BharatPe to Sell 25% Stake in Unity Small Finance Bank

India’s leading fintech company BharatPe is planning to sell up to 25% of its 49% stake in Unity Small Finance Bank (Unity Bank). The move is aimed at raising around $800 million (approximately Rs 6,500 crore) and is part of the company’s plan to meet RBI’s regulatory requirements. BharatPe, a major player in the digital payments and financial services sector, has appointed Rothschild & Co to oversee the stake sale.

Key Highlights

Stake Sale

  • BharatPe plans to sell up to 25% of its 49% stake in Unity Bank.
  • The company aims to raise approximately $800 million (Rs 6,500 crore) through this stake sale.

Regulatory Compliance

  • The Reserve Bank of India (RBI) mandates that BharatPe’s parent company, Resilient Innovation Private Limited, reduce its stake in Unity Bank to 10% by 2029.
  • BharatPe has appointed Rothschild & Co to facilitate the stake sale.

Unity Small Finance Bank Establishment and Progress

  • Unity Bank was established in November 2021 through a collaboration between Centrum Financial Services and BharatPe.
  • The bank gained recognition for successfully acquiring PMC Bank shortly after its launch.
  • In September 2024, Unity Bank reported a net profit of Rs 187 crore, up from Rs 138 crore in the previous year.
  • The bank’s total income grew by 77% to reach Rs 640 crore in the same quarter.

Digital First Banking Model

  • Unity Bank follows a digital-first model offering a seamless banking experience through open architecture and partnered business models.
  • It focuses on providing digital banking services to both small businesses and consumers.

BharatPe’s Background and Expansion Plans

  • Founded in 2018, BharatPe has grown into a significant player in payments and financial services.
  • Its investors include prominent names like Tiger Global, Sequoia Capital (now Peak 15 Partners), Dragoneer Investment Group, and Insight Partners.
  • BharatPe aims to use the funds from the stake sale to strengthen its core financial services and develop new products.

Future Plans

  • BharatPe sees the stake reduction as a way to meet regulatory requirements while also raising funds to expand its other business operations.
  • The company aims to use the proceeds to further grow its financial services offerings and boost innovation in the fintech space.
Summary/Static Details
Why in the news? BharatPe to Sell 25% Stake in Unity Small Finance Bank
Stake Sale 25% of BharatPe’s 49% stake in Unity Small Finance Bank
Estimated Funds Raised $800 million (approximately Rs 6,500 crore)
Reason for Sale To meet RBI’s regulatory requirement to reduce stake to 10% by 2029
Consultant Rothschild & Co
Key Achievement Acquired PMC Bank
Profit (Q2 FY24) Rs 187 crore (up from Rs 138 crore last year)
Total Income Growth 77%, reaching Rs 640 crore
Business Model Digital-first banking model
Major Investors Tiger Global, Sequoia Capital (Peak 15 Partners), Dragoneer Investment Group, Insight Partners
BharatPe’s Plan Use funds to expand financial services and launch new products
Shivam

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