BharatPe plans scheme to enrol merchant partners as investors

BharatPe plans to make its merchant partners stakeholders in the organization with the start of a $100mn merchant shareholding programme to motivate and reward loyalty among its merchants ahead of a planned public listing.

The merchant payments and financial services organization will roll out the incentive to its more than 7.5mn existing merchant partners. The programme will also be offered to new merchants joining the platform, according to the organization statement.

BharatPe’s strategy is to create an equity pool structure worth as much as $100mn to be allotted to eligible merchants over the next few years. The company believes its MSP pool will be valued at nearly $1bn by the time it goes public.

In an August interview, Bharat-Pe co-founder and MD Ashneer Grover said the company is planning a public listing by 2024. In addition, the company is also looking to double its merchant base to 14mn by next year.

While offline retailers are a key contributor to the growth of many fintech companies, including global firms, there isn’t any scheme right now that empowers their partners to create wealth for themselves.