In India’s fast-growing digital payments ecosystem, BharatPe has carved out a distinct space for itself—by empowering small merchants and kirana store owners with cutting-edge fintech solutions. Founded in 2018 by Ashneer Grover and Shashvat Nakrani, BharatPe was launched with a bold vision: to democratize digital payments for offline merchants and offer them access to credit, technology, and financial services.
While consumer-facing apps like Paytm, PhonePe, and Google Pay dominated early headlines, BharatPe chose a merchant-first approach, becoming the trusted partner for millions of small businesses across India.
The Origin of BharatPe
In the crowded UPI market, BharatPe stood out by targeting a neglected segment: local shopkeepers and SMEs who were still wary of digital payments. Ashneer Grover, a seasoned executive from fintech and investment backgrounds, observed that while India’s consumers were going digital, the neighborhood shopkeepers were still left behind due to lack of digital literacy and infrastructure.
In response, BharatPe was built as a QR code-based payment acceptance app that unified all UPI apps—Google Pay, PhonePe, Paytm, BHIM, and others—into a single interoperable QR. Merchants could now accept payments from any app without worrying about transaction fees.
USP: UPI Interoperable QR Code
The BharatPe QR code became its flagship product. Unlike competitors that locked merchants into their ecosystem, BharatPe’s Zero MDR (Merchant Discount Rate) model allowed free UPI transactions, making it instantly attractive for small shop owners.
This open network and fee-less model helped BharatPe acquire over 10 million merchants within just a few years.
BharatPe’s Business Model & Offerings
BharatPe’s monetization strategy didn’t rely on transaction fees—instead, it built a fintech ecosystem for merchants, offering services such as:
1. BharatSwipe
India’s first zero rental POS (Point of Sale) machine offering debit and credit card payments for SMEs. This product further bridged the digital divide for small retailers.
2. Merchant Lending
With real-time data from UPI transactions, BharatPe offered short-term business loans and Buy Now, Pay Later (BNPL) options to merchants. These were unsecured loans given with minimal documentation, solving a major pain point for India’s credit-starved MSMEs.
3. BharatPe 12% Club
An investment and borrowing platform where users can invest and earn 12% annual returns or borrow at competitive interest rates.
4. Peer Integration
Integration with Resilient Innovations Pvt Ltd., which enables the company to offer financial services such as insurance, digital gold, and lending partnerships with NBFCs.
Explosive Growth and Funding
BharatPe’s strong value proposition helped it raise over $650 million from top investors like Sequoia Capital, Ribbit Capital, Coatue, Tiger Global, and Dragoneer.
By 2021, BharatPe had:
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Expanded to over 300+ cities
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Facilitated over $16 billion in annualized TPV (Total Payment Value)
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Disbursed ₹4,000+ crore in merchant loans
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Partnered with NBFCs for lending products
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Became a major player in India’s offline retail payment space
Controversies & Leadership Turmoil
In early 2022, BharatPe hit headlines not just for its growth but also internal conflict. Co-founder and then Managing Director Ashneer Grover was accused of corporate misconduct, leading to an internal probe.
The investigation uncovered governance issues, ultimately resulting in Grover’s resignation. The episode sparked debate in India’s startup ecosystem around founder behavior, governance, and accountability.
Despite the controversy, BharatPe stayed resilient. A new professional leadership team was brought in to steer the company forward and rebuild investor confidence.
Strategic Collaborations: Unity SFB
In 2021, BharatPe joined hands with Centrum Group to acquire Punjab & Maharashtra Co-operative (PMC) Bank, with plans to launch a new-age Small Finance Bank named Unity SFB. This move signaled BharatPe’s ambitions to go beyond payments and become a full-stack fintech powerhouse.
Unity SFB aims to provide inclusive digital banking to underserved businesses and individuals—furthering BharatPe’s mission of financial inclusion.
Future Outlook
Looking ahead, BharatPe plans to:
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Expand its credit and POS lending across India
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Strengthen its merchant acquisition and onboarding through AI-driven tools
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Grow Unity SFB into a trusted small finance bank
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Invest in tech and product innovation for better customer experience
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Continue leadership in offline merchant payment solutions
BharatPe’s story is still unfolding, but its foundation in solving real India problems gives it a unique advantage in the crowded fintech space.
BharatPe is a classic example of solving Bharat’s problems with smart, scalable technology. By putting trust, simplicity, and financial access at the core of its offering, BharatPe has not just created a powerful business—but has also empowered millions of small businesses.
As India marches toward a digital-first economy, BharatPe’s commitment to merchant-first fintech innovation makes it one of the most important players to watch.
