BharatPe's FY22 losses swell after change in fair value of compulsory convertible preference shares

Fintech platform BharatPe suffered huge losses to the tune of ₹5,610.7 crore in the financial year 2021-22, due to a one-time non-cash expense related to change in fair value of compulsory convertible preference shares (CCPS).

In FY21, the company had posted a net loss of ₹1,619.2 crore.

Apart from the CCPS cost, the company's adjusted loss grew 2.2 times to ₹828.2 crore in FY22, from ₹227.3 crore in the earlier fiscal year, according to its financial statement with the Registrar of Company (RoC).

Earlier this month, the company had clarified that the CCPS-related item is a "one-off and shall not be there from next year as we have now reclassified the compulsorily convertible preference shares from liability to equity".

Meanwhile, its revenue from operations went up 3.8 times to ₹456.8 crore from ₹119 crore in FY21, owing to a surge in payments volumes on loan disbursals.

Earlier this week, the IPO-bound fintech platform announced three key appointments, along with hiring Ambuj Bhalla as its Chief Information Security Officer (CISO), as it fights a legal battle with former Co-founder Ashneer Grover in the Delhi High Court.

Founded in 2018, BharatPe is currently serving 1 crore merchants across more than 400 cities.

The company is a leader in UPI offline transactions, processing over 18 crore UPI transactions per month (with an annualized transaction processed value of over $24 billion in payments).

The company has facilitated the disbursement of loans close to ₹8,500 crore to over 450,000 merchants.
SEE ALSO:
Bling empire: This is how much gold it takes to deck up an Indian bride across states
In latest round of layoffs by tech majors, SAP cutting 2,900 jobs and IBM 3,900