According to analysts, Airtel Payments Bank, a subsidiary of Bharti Airtel, is expected to produce $1 billion (about Rs 7,650 crore) in annual income by 2030, thanks to a 10-fold increase in its gross transaction value (GTV) and a substantial increase in its monthly transacting user base. Airtel Payments Bank, which became profitable in the September quarter of FY22, now generates an annualized revenue of 1,000 crores.
“Bharti has found a way to generate profit in Indian fintech, and we model Airtel Payments Bank rising to $1 billion of revenue by 2030,” London-based telecoms research firm New Street said in a note, adding that APB’s current worth is estimated at around $3.5 billion.
The estimated revenue increase is based on Airtel Payment Bank’s GTV rising from 0.7 percent of Indian GDP today to 2.8 percent by 2030, its current base of 32 million revenue-generating users rising to 200 million by 2030, and its average revenue per user (ARPU) growing at a rate of 3% annually, according to the company.
On an annualized basis, Airtel Payments Bank had a GTV of 1.5 lakh crore in the December quarter of FY22
“Despite having 100 percent ownership, Airtel Payment Bank’s revenue/ARPU is not consolidated with Bharti as per RBI’s rule,” CLSA said, “but Bharti may attempt to extract value from this successful digital pivot.” Bharti Enterprises owns 30% of Airtel Payments Bank and 70% of Airtel Payments Bank. “APB’s competitive advantage is led by Bharti’s 184 million unique users across digital assets and India’s top B2B app for retailers,” according to the global brokerage.