BharatPe Case Study – Perfect Business Model

BharatPe case study is very interesting to know, it is the best example of last mover but fast mover.

It’s an interesting journey of the company, which was established in 2018 by two IITians- Ansheer Grover and Shashvat Nikarani, and then the company has been growing with the ultimate speed.

The consistent massive growth of BharatPe business model is not just an accident or an unpredicted experiment.

There is a very deep level of groundwork done by the team, failure-proof marketing strategies were applied with the accuracy of micro-level, emotional & engaging campaigns were run, and the result of these all combinations is the massive success of the business of BharatPe.

Well, this is just an overview, in this article, we are going to know all these details in a deep dive, how BharatPe determined the unstoppable journey of success in just 3.5 years.

It is considered the last mover but the fast mover because it jumped into the market when there were many big rivals of it, and in spite of stronger rivals, the BharatPe survived and became the emerging payment transaction company.

Why could it get done so?

Because, there was a unique business idea, and they found a loophole in the current online payment transaction system and attacked the fixing of that loophole, and you are seeing the results.

In this article, we will reveal how and what the BharatPe could do and compete with the apps which have been lying for many years and already dominated the market, and how BharatPe became one of the most successful online merchants payment transaction apps.

BharatPe Case Study With Interesting Facts

Why is the case study revealed by the publishers? Because the case study gives the audiences some ideas to grow the business in a different way.

Case studies are created only for those businesses or the entrepreneurs who have achieved some different things and in order to achieve something different, they would have done something different.

And that is why, the case study of the BharatPe business is quite interesting because instead of having very strong competitors like Paytm, PhonePe, Google Pay, and other rivals, BharatPe came late and was about to beat them.

It has a unique different model, different revenue sources and revenue models, different marketing strategies that others could not think of before the BharatPe, and much other different stuff which are going to be explored in just a couple of minutes in front of you.

BharatPe started to work on the ground level and passed one by one camping of success, and PhonPe noticed this and filed a legal case against it.

BharatPe Case Study

PhonePe filed the case against the BharatPe due to the trademark violation, and according to the information, PhonePe had an objection to using the word “Pe” used by the BharatPe.

But when your business model is unique, you are having a heavy marketing strategy, and you are having the best quality product, then no one can stop you to become successful ever.

BharatPe has the same things and that is why it can clear all the hustles coming in its way and move on day by day.

Foundation of BharatPe

Two IITians named Ansheer Grover and Shashvat Nikarani founded the BharatPe in 2018, where, Shashvat is IIT dropped out.

They found that the other online payment transaction companies were targeting only the consumers and customers, but there was not any platform or application which could solve the problem of the merchant community.

This was the missing part of the chain, and they targeted the merchants to provide the online payment receiving service, and this awesome business idea worked, and today, BharatPe has more than 5 Million active merchants as customers.

The world believes that if there is a saturation in any segment, and if you jump into it then you are a fool, but these two guys proved it wrong.

These two innovative guys proved that saturation comes only in the business, not in the business ideas and your business mind.

They found that after the existing several online payment transaction apps in the market, merchants were still struggling with the extra charges and additional costs.

So, they decided to make the application which is only for the merchants and which can provide the merchant full ease of payment.

BharatPe Business Model

The business model of BharatPe is very robust and simple, it is targeting only the merchant community of India.

It helps to receive the online payment from any UPI application to one UPI, it means, whether the customer has PhonPe, Paytm, Google Pay, or any other online payment transaction app, he will be able to send money to merchant from any app by scanning the BharatPe QR code.

Furthermore, BharatPe offers loans to the merchant by analyzing their cash flow, and this is the business model of BharatPe, which is very simple.

In addition, the products of BharatPe are valued for money, innovative, and strong.

Products of BharatPe Business Model

For any business, its products must be innovative, value for money, and sustainable. It means the company must-have products which can solve the bigger problem of its customers and customers must be loyal to it for a very long time.

And, according to this strategy, BharatPe has designed multiple products which never let the customers’ flow get down.

BharatPe Merchant App

The first product of BharatPe is the Merchant App from where the merchant receives the payment from the customers to his bank account.

You might be thinking that this service is already given by the other online payment apps, so how could BharatPe be different from others, right?

But the difference was that other apps were charging some amount for the instant settlement, whereas, the BharatPe is offering free instant settlement on an instant basis.

In the other apps, if the merchants want to do the settlement at zero commission, they would have to wait for a couple of days, whereas, the BharatPe is providing this service free of cost.

BharatPe Swipe Machine

The BharatPe swiping machine is the second legend product of the BharatPe business model.

Why is this product is a legend?

Because this is the only unique product that is working on 0% transaction-free for the payment transaction from the consumer to merchant.

Let’s understand this with a real-life example!

For example, whenever you go for dinner in a restaurant for dinner or lunch, and you want to pay the bill via debit card or credit card by swiping, then you will be charged the billed amount, but the merchant (restaurant) will get the amount after deduction the transaction fees.

For example, the billed amount for you is Rs 200, then when you will pay to the merchant, Rs 200 will be deducted from your bank account.

But the merchant will receive around 196 rupees because the 2% is the swapping fees which are charged from the card swapping machine company.

So, if the margin of the merchant is 15%, then he will receive only 13% because 2% is charged by the card swapping machine company.

And here, the BharatPe gets entered and offers the swapping machines at 0% commission, fees, or charges.

This was a very huge and game-changing revolution for the merchants, and after the introduction of this product, the consumer of BharatPe got a 3X hike.

With this revolutionary offer, more than one lakh retail stores and other commercial merchants have installed the BharatPe swapping machines, and this figure has not stopped here, it is continued.

12% Club

This product of BharatPe is very interesting, and just by reading the name of the product, you became too eager to know more about this product, right?

In this strategy of product marketing, BharatPe is offering the people to invest their money on the return interest rate of 10% on daily basis* .

There is not a time-bound or time block, whenever the user wants to invest the money, he can, and when he wants to withdraw the money, he can withdraw instantly as well without any processing fees.

On the second hand, you can take a loan of up to 10 lakhs rupees without any collateral at the interest rate of 12%.

This loan is for the normal user, if any merchant wants to borrow the loan, he can get the option to borrow the loan from the BharatPe merchant app.

This loan amount is from Rs 10,000/- to Rs 7,00,000/-, which is analyzed by the AI system of the BharatPe.

Extra Income Card

Again, this is a very interesting product of the BharatPe, BharatPe has tied up with many online companies, almost more than 400 companies.

In this product strategy, when you pay via the extra income card of BharatPe, you get guaranteed 1% cashback.

Now, to get this 1% pay, you need to pay some commission to it, so BharatPe receives lumpsum 4%-5% cashback from the online company from which it is giving you 1%.

BharatPe Credit Card

BharatPe offers you an amazing deal, if you use the BharatPe credit card, you can get the first 30 days of interest-free borrow amount up to 10,00,000/- rupees.

Revenue Model of BharatPe

The revenue Model of BharatPe is run by the products explored just above, and the revenue model is very different as well.

Moreover, these are the only ways from which the BharatPe generates its revenue, there is not any other way apart from these from where it generates the money.

The total monthly transaction amount of BharatPe is more than Rs 1,400 crores.

Unique Business Strategy of BharatPe

As I mentioned earlier in this article that BharatPe is competing with very strong rivals which had been dominating the online payment transaction market for many years.

And BharatPe entered the market very late, and in spite of late entry, it is beating the stronger rivals, because it has unique business and marketing strategies.

BharatPe noticed that there were many online payment transaction apps in the market, but all were targeting only the normal populations, there was not any facility for the merchants.

They found that merchants are missing so much in the race of all those apps, they found the opportunity in this problem.

So, the BharatPe made up its mind to work for the merchants dedicatedly, they made the App that could facilitate the merchants to receive payment from all different apps or UPIs through one common QR code.

As the result of the execution of this, though to convert in the manifestation, the BharatPe got launched, and you can see the results in 2022.

According to the strategy, they were going to provide the common QR code, by which the merchant could receive all the payments from different apps in its bank account directly, and as a result of this, the merchant would replace all other QR codes with the BharatPe QR code only.

Along with the common QR code, it is offering different kinds of benefits like cashback, gold coin, redeem points and many other offers to the merchants.

The Unique Marketing Strategy of BharatPe

Under the marketing strategy, BharatPe ran two campaigns:

  • Ek Bharat, Ek QR
  • TeamBharatPe

BharatPe made the ads by the cricketers instead of the famous actors and other celebrities because they noticed that their targeted audience was influenced by cricketers more than the celebrities.

Conclusion on BharatPe Business Model

As we saw that due to the different business and marketing strategies, BharatPe is competing with the very stronger rivals, and the future plans are bigger than what today they are.

BharatPe is planning to open its payment bank like Paytm Bank, and going to capture more part of the market.

Every business is a small business in the beginning, but with the constant efforts and executive the different effective strategies, it can achieve different milestones, and BharatPe proved it true.

It was launched when many apps had reserved their place in the industry with strength, in spite of it, BharatPe competed and became an emerging online payment transaction company.

It could be possible due to the great business idea, unique business model & marketing strategy, understanding the market trend, people’s problems, and choosing a specific audience for business as a consumer.

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