Bengaluru based Fintech firm BharatX bagged $4.5 Mn from Y Combinator

• ByStartupStory     |    May 12, 2022

BharatX, a Bengaluru-based fintech start-up, has raised $4.5 million in a seed round. Multiply Ventures, 8i ventures, Y combinator, and Soma Capital led the new funding round.

 Investors included Shashank Kumar, Dropbox’s Arash Ferdowsi, Dunzo’s Ankur Aggarwal, Harshil Mathur, CRED’s Kunal Shah, Mamaearth’s Varun Alagh, and Jio’s Vikas Choudhury, as well as current backer Java Capital. The investments will be used to enhance and expand the startup’s personnel, work on its product, and extend its reach. BharatX intends to expand its credit portfolio by introducing new product sectors such as Pay in 3, UPI Credit, and 15/30-day cycle credit cards.

Founded in 2019 by Mehul Nath Jindal, Eeshan Sharma, and Shyam Murugan, BharatX’s 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 software development kit and application programming interfaces (API) to deliver embedded credit on more than 50 consumer-facing platforms (SDK). Inc42’s ’30 Start-ups. To Watch’ – January 2022 issue featured the company. It allows consumer internet firms to provide credit to their customers with UPI credit, Pay later option, installment payments, or a completely tailored product.

BharatX works as a credit mediator and risk-taker charging consumers a value-based interest rate and embedding corporations a processing fee. The firm boasts a 45 percent approval rate for personal loans, compared with the industry of 30 percent.

According to Jindal, India’s middle class lacks access to finance, and the country lags behind South Africa and Brazil in credit penetration.

“By employing our integrated credit method, we can connect to these prime clients in a scalable and practically zero-cost manner, compared to other fintech firms who spend between $15 and $150 per person, saving us millions in the long term on CAC alone,” Jindal said.

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