Tiger Global Management is looking to lead an investment of around $ 350 million in BharatPe with more than $ 2 billion, which could make fintech a start for the Indian unicorn.
Tiger Global itself will invest $ 100 million through the participation of emerging investors such as Amplo, Beenext, Insight Partners, Sequoia Capital and Steadview Capital, among others, a development expert told Mint. Negotiations are in the “advanced” phase and an investment cycle “expected soon,” they added.
The development comes ahead of plans by the company and Centrum Group to take over the troubled Punjab Bank and Maharashtra Co-operative (PMC), the report said.
The move was approved by the Reserve Bank of India (RBI) in June under the tap licensing procedures. BaratPe and Centrum will deposit up to Rs 2,224 crore ($ 250-300 million) at PMB Bank over the next two years.
The “legal” authorization was granted following Centrum Financial Services Limited’s February 1 special offer, in response to the Expression of Interest notice dated 3 November 2020, published by PMC Bank, the RBI said.
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The approval is subject to the general guidelines for “on tap ‘licenses for’ Private Private Banking” on December 5, 2019, the RBI said.
As of March 31, 2020, PMC Bank had a total deposit of Rs 10,727.12 crore, a full development of Rs 4,472.78 crore and a full NPA of Rs 3,518.89 crore. The share capital of the bank is Rs 292.94 crore. The bank registered a residual loss of Rs 6,835 crore during 2019-20 and has an improper amount of Rs 5,850.61 crore. The RBI took over the board of PMC Bank in September 2019.
In early February, BharatPe had raised about $ 108 million in Series D for elementary and advanced levels led by Coatue Management at a cost of approximately $ 900 million.
