Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,841.55-6.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

BharatPe lines up loans for merchants

It is also planning to apply for its own lending licence to lend to merchants who are accepting payments through BharatPe QR codes.

, ET Bureau|
May 21, 2019, 08.50 AM IST
0Comments
Getty Images
money 2 - getty
The firm joins an already crowded club of other internet companies such as Cars24, Flipkart and Ola which have also taken a plunge into credit.
BENGALURU: Sequoia Capital-backed digital payments startup BharatPe has started extending small value, short duration loans to merchants by partnering with a few non-banking finance companies.

It is also planning to apply for its own lending licence to lend to merchants who are accepting payments through BharatPe QR codes, showing consistent transactions on the platform for the last three months.

The development means it joins an already crowded club of other internet companies such as Cars24, Flipkart and Ola which have also taken a plunge into credit.

bharatpe

“We have started a pilot for our lending product in Bengaluru and given out a few hundred loans only based on cash flow that the merchant generates through our QR code,” said Ashneer Grover, cofounder of BharatPe. “Lending will be one of our monetisation plans and we intend to scale it up slowly from here.”

The New Delhi-based startup has partnered with Apollo Finvest for such loans and plans to rope in more partners. BharatPe, which offers loans in the range of Rs 10,000 to Rs 1 lakh, charges an interest rate of 1.67% per month, cheaper than what local money lenders offer to this category of merchants. BharatPe wants to co-lend in collaboration with other financiers and try to keep interest rates under control once it gets a licence.
0Comments

Also Read

BharatPe hires Chief Business Officer to push lending entry

BharatPe appoints ex-Ikea Abhishek Shah as CMO

BharatPe in talks to raise Rs 120 cr in series-A round

BharatPe raises $15.5 million funding from Insight Partners, Sequoia and Beenext

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service