BharatX, a fintech firm based in India, has raised US $4.5 million on 12th May 2022, in a funding round led by Y Combinator, 8i Ventures, Multiply Ventures, and Soma Capital.
The funds will be used to grow the company’s personnel and develop its product.
Other notable angel investors who took part in the round were Arash Ferdowsi, co founder of Dropbox; Harshil Mathur and Shashank Kumar, cofounders of Razorpay; Varun Alagh, cofounder of Mamaearth; and Kunal Shah.
The cash will grow and develop the startup’s personnel, work on its product, and expand its reach. BharatX intends to expand its credit offering by launching new product verticals such as , Pay in 3, 15/30 day cycle, UPI Credit, credit cards.
What the company has to say:
Mehul Nath Jindal- Founder of Bharatx:
“By employing our embedded credit method, we can reach out to these prime clients in a scalable and nearly zero-cost manner, compared to other fintech firms who spend between US $15 and $150 per person, saving us hundreds of millions in the long run on CAC alone.”
According to the company:
Due to a lack of documentation, excessive interest rates, and insufficient credit supply in the informal sector, approximately 480 million Indians currently lack access to credit. According to BharatX, the Indian middle class has a US $1 trillion credit gap, and only 3% of Indians use credit cards for making purchases with credit.
What the investors have to say:
Vikram Chachra, founding partner at 8i Ventures:
“Within our first meeting with the founders, we decided to invest in BharatX’s seed round. It’s unusual to find this mix of vision and execution at such an early stage of a business.”
About the company:
BharatX was founded by Mehul Nath Jindal, Eeshan Sharma, and Shyam Murugan in 2019. Its first product was released in 2020: a white-label, embedded credit product that allows any consumer internet firm to become a credit/loan provider with just 30 lines of code.
BharatX is a consumer credit business that uses its Application Programming Interfaces (API) and software development kit to provide embedded credit on more than 50 consumer-facing platforms (SDK).
BharatX works as a credit mediator and risk-taker, charging consumers a value-based interest rate and embedding corporations a processing fee. The firm has a 45 percent approval rate for personal loans, compared to the industry average of 30 percent.
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