“Bharti has found a way to make profits in Indian fintech, and we model Airtel Payments Bank to hit $1 billion in revenue by 2030,” London-based telecoms research firm New Street said in a statement. a note, adding that APB’s current value (read: valuation) is estimated to be around $3.5 billion.
The estimated revenue jump, he said, is based on Airtel Payment Bank’s GTV growth of 0.7% of Indian GDP now to 2.8% over time, its current base of 32 million users generating revenue (monthly) increasing to 200 million by 2030 and its average revenue per user (ARPU) growing by 3% per year. Airtel Payments Bank’s GTV was ₹1.5 lakh-crore) on an annualized basis in the December quarter of FY22.
CLSA said that “Airtel Payment Bank’s revenue/ARPU is not consolidated with Bharti in accordance with RBI’s mandate despite 100% ownership, but Bharti may seek to unlock value from this successful digital pivot.” Airtel Payments Bank is 70% owned by Airtel and 30% by Bharti Enterprises. The global brokerage firm added that “APB’s competitive advantage is dominated by the access and reach of Bharti’s 184 million unique users across digital assets and the largest B2B application of India for retailers”.