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BharatX raises $4.5 mn in Seed round from YC, others to enable embedded credit

Other who participated include 8i Ventures, and other marquee VCs and angel investors along with existing investors, Java Capital

FPJ Web Desk | Updated on: Thursday, May 12, 2022, 11:34 AM IST

BharatX aims to increase the credit stack on offer by launching new product verticals.
/BharatX Founders Mehul Nath Jindal, Eeshan Sharma, and Shyam Murugan who are final year students of National Institute of Technology (NIT) Trichy |
BharatX aims to increase the credit stack on offer by launching new product verticals. /BharatX Founders Mehul Nath Jindal, Eeshan Sharma, and Shyam Murugan who are final year students of National Institute of Technology (NIT) Trichy |
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BharatX, a Y-Combinator backed company, has announced it has raised $4.5 million in a Seed round from Y Combinator, 8i Ventures, Multiply Ventures, Soma Capital and other investors to enable embedded credit in the Indian market. Existing investor Java Capital also participated in the round. The round also saw participation from many marquee Angels including Arash Ferdowsi, Co-founder, Dropbox, Harshil Mathur, CEO & Co-Founder, Razorpay, Shashank Kumar, Founder, Razorpay, Varun Alagh, Co-founder & CEO, Mamaearth, Kunal Shah, Founder and CEO, CRED, Ankur Aggarwal, Co-founder, Dunzo and Vikas Choudhury, President, Reliance Jio.

What does company do?

BharatX, a consumer credit venture, provides embedded credit by partnering with brands and websites to provide a credit feature in their apps to serve customers.

It operates White-labeled Buy Now Pay Later and other credit products on more than 50 consumer-facing platforms via it’s APIs and SDK.

It aims to deliver seamless embedded credit experiences on several consumer-facing platforms across India, with zero credit risk and zero operational hurdles for the Brands it partners with.

What will funds raised be used for?

The funds raised will be used to build and expand the team, enhance and develop the product further and for market expansion. Powered with a “credit approval rate” of 45 – 55 percent, which is 3-4X the market standard, BharatX aims to increase the credit stack on offer by launching new product verticals such as UPI Credit, Pay in 3 and 15/30 day cycle products like Credit Cards.

Company plans to scale up quicker

Founded in 2019, BharatX has been working with 50+ brands in India including the largest D2C brands in India, growing more than 10X in the last 4 months in volume. The founders include Mehul Nath Jindal, Eeshan Sharma, and Shyam Murugan who are also final year students of National Institute of Technology (NIT) Trichy.

Mehul Jindal, Co-Founder and CEO, BharatX, says, “Our B2B2C business model enables us to not only win trust of users via the brand power of players we work with, but also enable us to reach to millions of users at Scale with almost Zero Cost.. And with this new round of support from our investors, we’re looking to scale up faster and more aggressively in the near future,” he adds.

Investor Speak

Vikram Chachra, Founding Partner, 8i Ventures, said, “We committed to invest in the Seed round of BharatX within our first meeting with the founders.”

Arash Ferdowsi, Co-founder, Dropbox, said, “In a short time, Mehul and the BharatX team made the “buy now, pay later” experience seamless and instantaneous for both brands and consumers.”

Currently, nearly 480 million Indians don’t get access to credit due to lack of documentation, high interest rates and inadequate supply of credit in the informal sector. There is a $1 trillion credit gap in the Indian middle class wherein less than 3% of India has credit cards for making purchases using credit.

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Published on: Thursday, May 12, 2022, 11:34 AM IST