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New Delhi: As part of its strategy to monetise its digital service offerings, Bharti Airtel will look at listing its fintech arm, Airtel Payments Bank, reported the Financial Express quoting sources, adding that the exact timing hasn’t been finalised yet.
It said even though Airtel has several other digital businesses relating to advertising, cybersecurity, cloud for small and medium enterprises, and communication platforms as a service (CpaaS), these cannot be monetised on the lines of the payments bank because they are intertwined with the mobility business. The only other digital business after payments that can be monetised is, according to the report, data centres, but that would take years.
Digital businesses contribute to only a very small portion, around Rs 3,000 crore annually, of Bharti Airtel’s overall revenues, said the source mentioned in the report. It said that Airtel Payments Bank, which has 50 million users with a gross merchandise value of Rs 20,000 crore, makes sense to get listed at some stage.
Airtel Payments Bank reported a profite of Rs 9 crore on revenues of Rs 941 crore in FY22. However, it had posted losses of Rs 464 crore and Rs 434 crore in FY20 and FY21 respectively. As of now, Bharti Airtel holds 70 per cent share of Airtel Payments Bank, while the remaining 30 per cent is held by its parent Bharati Enterprises.
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