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BharatX Acquires Zenifi to Enter Healthcare Finance Sector

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Y-Combinator-backed buy now pay later (BNPL) startup BharatX has announced the acquisition of healthcare fintech startup Zenifi, marking its foray into the medical loans segment in India. While the financial details of the deal were not disclosed, this strategic move is set to expand BharatX’s footprint into the burgeoning healthcare sector.

As part of the acquisition, Zenifi co-founder and CEO Padam Kataria will join BharatX as the Head of Business – Healthcare. Kataria will spearhead the development of BharatX’s healthcare lending business.

“By being a part of BharatX, Zenifi team can leverage the pre-existing lending platform and realise better economics. And this acquisition will allow BharatX to break into the healthcare sector, a sector ripe for disruption and one of the largest sectors needing credit after its disruptive success in online shopping credit solutions,” the company said in a statement.

Mehul Jindal, co-founder and CEO of BharatX, highlighted the challenges faced by the healthcare sector in India, particularly in terms of financing medical services. “Healthcare sector in India faces a significant challenge when it comes to paying for medical services. This becomes a problem especially during emergencies. India continues to spend the largest amount for accessing healthcare through their own pockets, making availing medical facilities an expensive proposition,” said Jindal.

BharatX has already established itself as a significant player in the BNPL market, providing financing options for over 125 brands. The company reported a remarkable 33x growth over the past five quarters and has raised over $4.7 million in funding. To date, BharatX has disbursed loans to over 200,000 users.

Padam Kataria, reflecting on the acquisition, expressed optimism about the synergy between the two companies. “We have firsthand experience of making medical lending easy and accessible and with BharatX’s well-established credit as a service, the synergies between the two companies will ensure that we can accelerate the speed with which we capture the market,” he said.

The healthcare market in India is poised for significant growth. According to a Bain & Company report published in March, the Indian healthcare market was valued at approximately $180 billion in FY2023 and is projected to grow at a compound annual growth rate of about 12%, reaching around $320 billion by FY2028. The medical technology (medtech) segment, valued at around $11 billion, is largely dominated by imports, accounting for 75% to 80% of the market.