Care.fi, a fintech startup specializing in the healthcare sector, has successfully raised $2.6 million in a new funding round. The round includes $2 million in debt from venture debt firm Trifecta Capital and an additional $600,000 from UC Inclusive Credit, an impact-focused non-banking financial company backed by Aarin Capital and TV Mohandas Pai.
Care.fi, co-founded by Sidak Singh and Vikrant Agrawal, aims to become a healthcare-focused small finance bank, offering supply chain financing solutions to hospitals, pharmacies, manufacturers, and suppliers. The latest funding will be used to expand the company’s operations and strengthen its team.
“The journey is upwards only from here. Based on our understanding of the market and the pain points of the patients, we have seen that optimizing the operational bit, especially for insurance at a time when patients are eager to wrap up payments and go home, is very important,” said Sidak Singh.
The company’s flagship product, CareCred, allows hospitals to raise finance against their invoices, providing real-time updates on payment dues and transactions. Hospitals can also set up autopay to streamline the repayment process.
“We are going to deploy this funding across two major building blocks, i.e. expansion and growing the business and strengthening the team with fresh, relevant talent to achieve new milestones,” said Vikrant Agrawal. The company has collaborated with over 50 hospitals and assisted more than 2,000 patients with their claims.
According to a January report by Bain & Company, India’s private healthcare spending, expanding pharmaceutical manufacturing, and evolving healthcare technology ecosystem are making the country a hub for private equity investments. The report indicated that India is poised to lead in deal value across the Asia-Pacific region, with an expected deal value of $4.6 billion in 2023.
