BharatPe eyes IPO, banks on profitability edge over Paytm

Fintech major BharatPe is gearing up to hit Dalal Street. Sources tell CNBC-TV18 the company has started lining up bankers for an IPO. CEO Nalin Negi has confirmed BharatPe is on track to raise raise funds before the company debuts on the Dalal Street.

As per sources the company is looking to raise ₹800–1,200 crore in a pre-IPO round, with the exercise expected to value the firm at 11.5–12 times its revenues. That is lower than the peak ₹20,000 crore valuation it commanded in 2021, but close to Paytm’s current 11x multiple.

The key differentiator: profitability. BharatPe turned profitable in FY25, just seven years after launch. By contrast, Paytm, nearly four times larger, took 15 years and reached profitability only in FY26.

BharatPe vs. Paytm

On scale, though, Paytm remains far ahead. It clocked revenues of ₹6,900 crore in FY25 compared to BharatPe’s ₹1,500 crore, with a bigger merchant base, higher TPV, and larger loan disbursements. BharatPe, however, scores better on margins at 7.3%, compared with Paytm’s 4%.

The two fintechs also play to different strengths. While Paytm is more diversified, BharatPe is doubling down on credit — lending accounts for 57% of its revenues, against 27% for Paytm. To strengthen this vertical, BharatPe has raised its stake in its lending arm Trillionloans.

BharatPe also recently secured RBI approval to operate as a payment aggregator and is in advanced talks to raise $80–100 million from Coatue Management. These moves, sources say, will help the company approach the markets as a leaner, merchant-focused, profitable fintech.

The question for investors, however, will be clear: will they bet on BharatPe’s profitability at a smaller scale, or Paytm’s size and reach?