BharatX, a prominent buy now pay later (BNPL) startup backed by Y-Combinator, has made a strategic move into the healthcare finance sector with its recent acquisition of Zenifi, a fintech startup specializing in healthcare financing. While the financial specifics of the deal remain undisclosed, this acquisition underscores BharatX’s ambition to diversify its offerings and tap into the burgeoning medical loans segment in India.
The acquisition sees Padam Kataria, co-founder and CEO of Zenifi, stepping into the role of Head of Business – Healthcare at BharatX. Kataria’s expertise will be instrumental in steering BharatX’s expansion into the healthcare lending space.
BharatX’s decision to venture into healthcare finance comes at a crucial juncture, as the sector grapples with significant challenges, particularly in terms of financing medical services. Mehul Jindal, co-founder and CEO of BharatX, highlighted the pressing need for accessible medical financing in India, especially during emergencies. With healthcare expenses predominantly borne out of pocket by individuals, BharatX aims to address this gap and facilitate greater access to medical facilities through its lending platform.
Having already established itself as a key player in the BNPL market, with financing options available for over 125 brands, BharatX brings considerable expertise and infrastructure to its foray into healthcare finance. The company’s robust growth trajectory, boasting a remarkable 33x expansion over the past five quarters, reflects its strong market positioning and potential for further growth. With over $4.7 million in funding raised to date and loans disbursed to over 200,000 users, BharatX is well-positioned to make a significant impact in the healthcare lending space.
Padam Kataria expressed optimism about the synergies between Zenifi and BharatX, noting the potential to accelerate market capture through their combined strengths. Leveraging BharatX’s established credit infrastructure, coupled with Zenifi’s expertise in simplifying medical lending, the acquisition sets the stage for rapid expansion and innovation in the healthcare finance sector.
The Indian healthcare market presents immense growth opportunities, with projections indicating a compound annual growth rate of approximately 12% through FY2028. The sector, valued at around $180 billion in FY2023, is poised for substantial expansion, driven by increasing demand for medical services and advancements in medical technology. With imports currently dominating the medical technology segment, there exists significant potential for homegrown solutions to play a transformative role in shaping the future of healthcare in India.