BharatPe, the India-based fintech company, has reported a net loss of ₹88.2 crore in FY25, marking a steep reduction from the ₹492 crore loss in FY24.
- Its operating revenue rose ~17%, reaching ₹1,667 crore in FY25 (versus ~₹1,426 crore in FY24).
- Including other income (₹67 crore), its total income stood at ₹1,733.6 crore.
- Expense control also played a role: total expenses in FY25 declined slightly (-3.5%) to ₹1,906 crore compared to ₹1,974.4 crore in FY24.
- On a pre-tax adjusted basis (excluding ESOP expenses), BharatPe turned marginally profitable, reporting ~₹6 crore profit versus a loss of ₹342 crore a year earlier.
Additionally, FY25 marks the first time BharatPe has delivered positive EBITDA, estimated at ~₹47 crore.
What Drove the Turnaround
Several factors appear to have contributed:
- Revenue growth across core verticals: The increase in payments, service charges, and lending-based income helped bolster the top line.
- Prudent cost management: The company reduced marketing spend aggressively (down ~88%), trimmed outsourced services, and moderated other variable costs.
- Control over credit / guarantee costs: Though financial guarantee or credit costs rose (~189 %), overall expense discipline helped offset some of that burden.
- One-time gains: There was an exceptional gain (~₹71 crore) from a specific investment, which aided the adjusted PBT.
Implications & Risks Ahead
For BharatPe
- The narrowing of losses and adjusted profitability lend credence to its claim of being on a path toward sustainable operations.
- However, the net loss is still real, and full profitability will demand consistent growth and continued cost control.
- Dependence on one-time gains or favorable accounting adjustments is risky in the long run.
For Investors & Stakeholders
- The improved financials may restore confidence among existing and prospective investors.
- BharatPe is reportedly eyeing a fresh $100 million funding round to support further expansion. The Economic Times
- The positive EBITDA performance may help in positioning the firm as a more mature fintech player.
Broader Fintech Context
- BharatPe’s results highlight how fintechs are pushing toward profitability over pure scale.
- The shift is consistent with investor expectations that startups must eventually deliver returns, not just user growth.
- But challenges remain: regulatory changes, competition (from rivals like PhonePe, Razorpay, etc.), credit risk, and scaling costs.
In Summary
BharatPe’s ₹88 crore net loss in FY25 represents a dramatic improvement from the previous year’s ₹492 crore deficit. Through revenue growth, cost rationalization, and selective one-time gains, it has moved closer to sustainable performance — even reporting a small adjusted profit before tax. The company now faces the task of maintaining momentum, proving resilience in normalised conditions, and scaling without reverting to large losses.
