BharatPe's losses rise on the back of change in fair value of CCPS
BharatPe’s total expenditures jumped by 3.47 times to Rs 6,264.9 crore to FY 2022 on a consolidated basis. A major contributor to this increase in expenditure was due to the change in fair value of CCPS and other expenses to the tune of Rs 1,098.05 crores.
Fintech company clocked net losses of Rs 5,611.58 crore after tax on a consolidated basis for FY 2022, an increase of 3.46 times over the previous year’s losses at Rs 1619.17 crores.
The escalation in losses was due to a change in the fair value of Compulsory Convertible Preference Shares (CCPS) amounting to Rs 4,782 crore as reported by the company earlier this month.
On a consolidated basis, BharatPe reported revenue from operations of Rs 456.08 crore for FY 2022 and Rs 320.7 crore on a standalone basis. The corresponding numbers for FY 2021 stood at Rs 119.08 crore on a consolidated and standalone basis.
BharatPe’s total expenditures jumped by 3.47 times to Rs 6,264.9 crore to FY 2022 on a consolidated basis. A major contributor to this increase in expenditure was due to the change in fair value of CCPS and other expenses to the tune of Rs 1,098.05 crores. Employee benefit expenses more than doubled to Rs 166.9 crores for FY 2022, from Rs 75.41 crore in the year-ago period.
Founded in 2018, Tiger Global and Steadview Capital backed BharatPe has been in a state of flux. The company replaced CEO Suhail Sameer with the interim appointment of Nalin Negi earlier this month. The company has also been in a drawn out battle with ousted Co-founder Ashneer Grover and has filed an arbitration under the Singapore International Arbitration Centre regulations to claw back his shares.
Edited by Akanksha Sarma