FinTech Startup BharatX Expands Into Medical Lending with Zenifi Acquisition

BharatX is a venture capital-backed FinTech startup in India that aims to use technology to improve credit access for the country’s middle class. The company has identified that around 110 million Indian households with incomes over 500,000 rupees per year lack access to formal credit options. To address this, BharatX is integrating credit services as a feature within consumer-facing apps, leveraging data to innovate with products that remove barriers and lower costs. This is changing the way credit is made available to the underserved Indian middle class segment.

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BharatX, a fintech startup backed by Y-Combinator, has successfully acquired Zenifi, a healthcare finance startup specializing in zero-cost and low-cost EMI solutions. This strategic acquisition marks BharatX’s foray into the medical lending sector, aligning with its mission to offer credit services to consumers.

Under the terms of the agreement, Padam Kataria, Co-founder and CEO of Zenifi, is set to assume the role of Head of Business—healthcare at BharatX. Drawing upon his wealth of industry knowledge cultivated throughout his time at Navi and Zenifi, Padam will spearhead the development of BharatX’s healthcare lending division, as outlined in a statement issued by the startup.

Established in 2023 by Padam Kataria, Harshit Shrivastava, and Rajendra Kulkarni, Zenifi specializes in offering zero-cost and low-cost EMIs aimed at enhancing conversion rates for healthcare providers. Its primary focus is on facilitating the conversion of walk-in patients through the provision of economical payment alternatives for their medical care. The company asserts that it has forged partnerships with numerous hospitals and aggregators, resulting in an annual demand rate exceeding Rs 1.2 crore.

BharatX announced a robust alliance with Zenifi, a longstanding collaborator renowned for pioneering lending platforms for credit extension. Through this integration with BharatX, Zenifi stands to optimize its operational efficiency by harnessing the already established lending infrastructure.

Significantly, this acquisition marks BharatX’s strategic entry into the healthcare domain, a sector primed for innovation and possessing substantial credit demands, particularly following the transformative impact of online shopping credit solutions.

“Teaming up with BharatX presents Zenifi with a promising prospect. With our proven track record in simplifying medical lending accessibility, combined with BharatX’s reputable credit-as-a-service model, the collaboration between our two entities promises to expedite our market penetration,” stated Padam Kataria, CEO of Zenifi.

“Our objective revolves around extending uncomplicated credit solutions to the vast population of Indians who find themselves constrained to out-of-pocket expenses for medical exigencies,” Kataria emphasized.

Mehul Jindal, the Co-founder and CEO of BharatX, highlighted the pressing issue within India’s healthcare sector concerning payment for medical services, particularly evident during emergencies. He emphasized that India remains burdened with the highest out-of-pocket healthcare expenses globally, rendering access to medical facilities financially challenging. Collaborating with Zenifi, BharatX is actively tackling this issue by offering practical and cost-effective solutions.

Jindal emphasized that the acquisition will enable BharatX to deepen its presence in the healthcare domain. He noted the current lack of instantaneous credit disbursement by both fintech and traditional entities, a crucial aspect in emergency healthcare situations. Jindal affirmed that maintaining the original essence while ensuring complete uniqueness was imperative.

In a strategic move, fintech startup BharatX has acquired healthcare finance company Zenifi. This acquisition marks BharatX’s foray into the medical lending sector, aligning with its mission to provide credit services to consumers. Zenifi’s CEO, Padam Kataria, will lead BharatX’s healthcare lending division, leveraging his industry expertise. The collaboration aims to address the pressing issue of high out-of-pocket healthcare expenses in India by offering practical and cost-effective financing solutions, including zero-cost and low-cost EMIs. The acquisition is expected to accelerate market penetration for both companies, combining BharatX’s credit-as-a-service model and Zenifi’s specialized lending platforms.