Fintech firm BharatX raised $4.5 million in a seed round from Y Combinator, 8i Ventures, Multiply Ventures, Soma Capital, and other investors to expand its embedded credit product that integrates financial services into traditional businesses.
Existing investor Java Capital participated in the round. Angel investors Arash Ferdowsi, co-founder of Dropbox, Harshil Mathur, CEO and co-Founder of Razorpay, Shashank Kumar, founder of Razorpay, were in the round too.
“Consumers of India deserve a better class of Credit products out there. Today, if you look at the landscape, most players have low Credit Eligibility approval rates, long documentation sign-up processes and unethical collection practices. We want to give the Middle Class of India easy access to credit products that they deserve yet are not able to access today, while setting the bar for world-class UX and customer service while doing so,” said Mehul Jindal, co-founder and CEO of BharatX.
BharatX works 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.
BharatX will use the funding to expand its team and develop its product. “We (are) committed to invest in the seed round of BharatX within our first meeting with the founders. It's rare to find this combination of clarity of vision and flawless execution at such an early stage of a venture,” said Vikram Chachra, founding Partner at 8i Ventures.
“I’ve been very impressed by Mehul and the BharatX team. They have a clear vision for the future of e-commerce in India and the talent to make it a reality,” said Ferdowsi, co-founder of Dropbox,
Founded in 2019, BharatX works with more than 50 brands in India and it has grown more than tenfold by volume in the last four months. Its founders include Jindal, Eeshan Sharma, and Shyam Murugan who are also final year students of National Institute of Technology (NIT) Trichy.