Not true that BharatPe isn’t growing fast: Chairman, BharatPe

New age companies and start-ups including fintechs work differently compared to legacy institutions. Legacy institutions also have targets, but new age companies show very fast growth and new ways of thinking and working. About BharatPe, it’s a misconception that the growth has slowed. Maybe we are not acquiring merchants at the same pace. But the focus now, apart from corporate governance (which has largely been taken care of) is putting the structure in place and business development.

There has been a change in the strategy towards profitable merchant acquisition because we have to be mindful that there is a cost associated with it. Therefore, if you look at the number of merchants acquired, you may think there is a slowdown. But then, we are facilitating loans for these merchants, and we must be mindful that in lending business you can’t be overaggressive. 3 – 4 years back was it was different. Today, there are regulatory guidelines on digital lending. There is regulatory oversight on everything we do despite not being directly regulated. Therefore, compliance, governance and business are our top priorities. It should never be either or. We must have a proper credit risk underwriting mechanism. Selectively someone can read numbers and say BharatPe isn’t growing fast, but that’s not true.

BharatPe is a private limited company. There is no obligation to share that information. There’s been so much focus on the company disproportionate to its size, which I believe isn’t warranted. But as far as our investors are concerned, they get monthly information that is required and we share the information with our employees during townhall meetings.

We have sufficient cash in our balance sheet. There is no need for funds for survival. The funds will be raised depending on the quantum required for growth and investment purposes (as we have acquired an NBFC), and it could be for the business opportunities. But definitely not for survival.

Gaps in the management is by and large filled. Currently, we are working with interim CEO and one or two positions remain unfilled; that’s an ongoing process. At the CXO level, whoever wanted to go for whatever reasons have gone and whoever wanted to come join us, have come in. They have come in with the eyes and ears open and a commitment to grow the business of the company. Therefore, should be any exits (in future), there are people to step in. There’s been a lot of media attention on it, but I always tell media - what about the people who have joined; look at their calibre and experience.

As a Chairman of the board, I have not had any conversation with any of the investors regarding any discomfort with what BharatPe is doing. But you are free to check with the investors.

There are advantages of being listed and it also comes with certain added responsibilities. One of the purposes of listing is that you give liquidity to investors. Second is you need funds for growth. Depending on growth requirement and giving liquidity for the existing investors and the market condition, at some stage, BharatPe will have to list. But there are many boxes BharatPe will tick in terms of what is expected of a listed company despite being a private limited company. But the interest and visibility around BharatPe is that of a listed company.

We continue to hold our stake and in no hurry to divest or monetise. According to us, the bank, in its initial 18 months has tried to put its house in order as it acquired PMC Bank. They are adopting a new technology platform. We believe that this investment will prove to be profitable for BharatPe.

Doing the routine things isn’t exciting, isn’t it! There should always be something different and if such opportunities come, I enjoy it.

When I worked 40 years in an organisation, for me, it was exciting. And after that now, whatever I’m doing, I’m excited about it as well! In those 40 years, there was a self-compulsion about taking care of the family. But now whatever I do, there is no compulsion.