Fintech firm BharatPe valued at $2.85 bln after Tiger Global-led funding

Fintech firm BharatPe said on Wednesday it had raised $370 million in a funding round led by investment giant Tiger Global, giving the company a valuation of $2.85 billion.

The fund raising, which pushes three-year old BharatPe into the unicorn club, gives the company capital as it takes over distressed lender Punjab and Maharashtra Co-operative Bank with Centrum Financial Services to create a small finance bank.

"We now have $0.5 billion cash on books and are extremely well capitalized to deliver on our mandate to build India's first truly digital bank," said Ashneer Grover, co-founder and managing director of BharatPe.

Existing investors Sequoia Growth, Insight Partners, Coatue Management, Amplo and Ribbit Capital have also invested in the Series E fundraise, BharatPe said in an emailed statement.

Indian tech startups have recorded a surge in funding this year as investors bet on companies that are likely to benefit in the post-pandemic world, with food delivery firm Swiggy and Walmart Inc-owned Flipkart raising capital in July.