Small business is a locomotive of the economy of a very diverse and huge country like India. However, for years these micro, small, and medium enterprises (MSMEs) persevered under the strain of limited access to finance, cash payment and a lack of digital access. BharatPe became one of the revolutionary solutions by making digital payments easy and giving power to small businesses in India. This post explores the most compelling behind the scenes story of BharatPe— its genesis, its founders' dream, and its deep social implications.
The Genesis of BharatPe
Although consumers responded to UPI-enabled payment, merchants were in a state of panic due to the inconsistent systems and the high charges imposed via point-of-sale (POS) intermediaries. Small merchants, in particular, lacked the resources and infrastructure to embrace digital payments effectively.
create a unified platform that would allow merchants to accept UPI payments from any app—Google Pay, PhonePe, Paytm—without the hassle of managing multiple QR codes or paying transaction fees.
Building the Prototype: A Unified QR Code System
BharatPe’s prototype was groundbreaking—a single QR code that merchants could use to accept payments from all UPI apps. On this concept of a multilayered, interoperable QR code that is accessible to everyone, there was a revolution. Not relying on multiple QR codes and with no charge transaction fee for the service, BharatPe quickly gained popularity among small business owners.
The founders deliberately chose to recruit kirana stores, street vendors and small retailers, who were traditionally underrepresented in digital payments technologies. This bottom-up model enabled BharatPe to quickly extend the reach of the company across Tier 2 and Tier 3 cities and meet their specific needs.
The Success Journey: From Startup to Unicorn
BharatPe’s growth was nothing short of phenomenal. In just two years after its launch, the company attracted more than four million merchants and incurred transaction values in the billions of rupees. The company, BharatPe, achieved unicorn status in August 2021 (valuation above 370 million capital injection from Tiger Global.
Key factors contributing to BharatPe’s success include:
- Merchant-Centric Focus: In contrast to the vendor competition on the client side, BharatPe focused its efforts on the small trader side.
- Fee-Free Payments: BharatPe lined its merchants with zero MDR (Merchant Discount Rate) on maintenance charges as a fee to continue their business.
- FinTech Innovation: Focusing on and extending beyond payment, i.e., merchant loans, BharatPe leveraged transaction data to aid in the lending process.
- Strategic Partnerships: Partnering with banks and financial institutions enhanced the product and the reputation of the company.
Hidden Stories and Lesser-Known Facts About BharatPe
Ashneer Grover’s Persuasive Pitch
Ashneer Grover's capacity to raise capital and forge partnerships was central to the success of BharatPe. Specifically, one yarn serves as an example of, how Ashneer used to have the support of investors not just by praising the potential of the merchant community in India, but also by highlighting the unrealized potential of the merchant community in India. His bold claim that “every kirana store will become digital in five years” resonated with investors, leading to early funding that fueled rapid growth.
Shashvat Nakrani’s Leap of Faith
As a student, Shashvat Nakrani, the base of a unicorn in India, established BharatPe. Juggling academics and entrepreneurship, he spent many nights perfecting the product, even as he finished his dissertation.
Merchant-Centric Campaigns
BharatPe marketing efforts reached the merchants directly, through the use of local languages and grassroots efforts, to build trust. This hyper-localized approach set BharatPe apart from competitors.
Impact on Society: Changing Perceptions and Mindsets
BharatPe has made a significant contribution to Indian society in the following ways: .
Empowering Small Merchants
Before BharatPe, small shopkeepers and vendors used to have a negative outlook on digital payment being difficult/complex and surprises hidden in costs (for instance). BharatPe demystified the process, making it accessible and affordable. As a result, millions of merchants embraced digital payments, enhancing their operational efficiency and customer experience.
Driving Financial Inclusion
Using collateral-free lending to merchants based on information about their transactions, BharatPe plugged a large credit gap. Now, thanks to this financial literacy, small businesses can begin to prosper and expand.
Normalizing UPI Payments
BharatPe really played a major part in making UPI transactions "normal" in everyday retail transactions, modifying both consumer and merchant behavior to become less dependent on cash.
Challenging the Status Quo
BharatPe revolutionised the payments sector by promoting the use of zero MDR, and by advertising against the use of conventional POS systems that used to be expensive. That pursuit of no-cost-payments jumped not only the benefits for merchants but also triggered the craving of the competition, to re-position themselves.
Societal Perception: A Shift Toward Digital Empowerment
The success story of BharatPe illustrates India's digital, i.e. It dispelled the concept that small businesses were immune or unable to use technology. However, through its own experience, BharatPe proved that under the right conditions, even the traditionally conservative companies equipped with the right tool kit and company support could not only live but flourish in the digital age.
The Road Ahead for BharatPe
Once the winner of a game of merchant payments, BharatPe is never idle. The company's plan is to increase the financial services portfolio, develop new income streams, and increase presence in underserved markets. It vision to connect the merchant ecosystem digitally is more relevant than ever as India is getting closer toward a cashless economy.
Conclusion
The growth of BharatPe, from a small company to a Fintech unicorn, is one such inspiring example of vision, innovation, and doing. Through the provision of free digital payment and credit services to small enterprises, BharatPe has created a profound economic and social impact on India. Its success is a lesson, namely that change is never easy and untoward, and that in fact change comes first and foremost from understanding and responding to the needs of the neglected and voiceless.
Even as BharatPe is constantly shaping the FinTech landscape, the story of the company is inspiring to new entrepreneurs and shows the power of technology for driving societal and economic transformation.