In a strategic move to diversify its portfolio, BharatX, a buy-now-pay-later (BNPL) fintech startup backed by Y Combinator, has recently announced its acquisition of Zenifi, a healthcare finance startup. This acquisition marks BharatX’s entry into the healthcare lending space, further expanding its reach within the fintech sector.
The Acquisition Deal
Under the terms of the acquisition, BharatX has acquihired Zenifi for an undisclosed sum. This move is aimed at leveraging Zenifi’s expertise in healthcare financing to strengthen BharatX’s foothold in the healthcare vertical. As part of the deal, Padam Kataria, co-founder and CEO of Zenifi, will join BharatX to lead its healthcare vertical. Kataria brings with him a wealth of experience from his previous roles in prominent companies like Navi, Zenly, Asteria Aerospace Ltd, and Sprinklr.
Strategic Implications
Mehul Nath Jindal, co-founder and CEO of BharatX, emphasized the significance of this acquisition in enabling BharatX to delve deeper into the healthcare vertical. He highlighted the critical need for instant credit disbursement in emergency healthcare situations, a gap that BharatX aims to address through its collaboration with Zenifi.
Synergies and Market Acceleration
Kataria expressed optimism about the synergies between BharatX and Zenifi, citing their shared commitment to making medical lending accessible and efficient. By combining Zenifi’s expertise in healthcare finance with BharatX’s well-established credit-as-a-service model, the two companies aim to accelerate their market penetration and capture a larger share of the healthcare lending market.
Company Backgrounds
Zenifi, founded in 2023 by Kataria, Harshit Shrivastava, and Rajendra Kulkarni, specializes in offering affordable payment options through zero-cost and low-cost EMI solutions, with a focus on increasing conversion rates for healthcare providers. On the other hand, BharatX, established in 2019 by Jindal, Eeshan Sharma, and Shyam Murugan, provides embedded credit solutions to consumer-facing platforms, boasting partnerships with over 125 brands.
Market Dynamics
The acquisition comes at a time of rapid growth in the BNPL segment, with BharatX facing competition from players like Credy, Flexmoney, ZestMoney, and others. The move also aligns with broader trends in the credit-as-a-service sector, exemplified by recent developments such as Zeta’s launch of a digital credit-as-a-service product for banks.
Investment Landscape
BharatX’s acquisition of Zenifi follows its successful seed funding round, where it raised $4.5 million from investors including Y Combinator, 8i Ventures, Multiply Ventures, Java Capital, Soma Capital, and prominent angel investors such as Arash Ferdowsi, Harshil Mathur, Kunal Shah, and others.
Market Outlook
According to the State Of Indian Fintech Ecosystem Q3 2023 report by Inc42, the Indian digital consumer lending market is projected to exceed $720 billion by 2030, representing a significant portion of the total digital lending market opportunity in the country.
