Gurugram-based Care.fi Secures $2.6 Mn to Enhance Healthcare Financing

This includes $2 million in debt from Trifecta Capital and $600,000 from UC Inclusive Credit, an NBFC backed by TV Mohandas Pai’s Aarin Capital.

Gurugram-based healthcare-focused fintech startup Care.fi has secured $2.6 million to expand its healthcare financing solutions. This includes $2 million in debt from Trifecta Capital and $600,000 from UC Inclusive Credit, an NBFC backed by TV Mohandas Pai’s Aarin Capital.

Care.fi, cofounded by Vikrant Agrawal and Sidak Singh in 2021, plans to use the funds to expand its book size and strengthen its team. Further, the latest infusion of funds will be utilized to support hospitals' healthcare supply chain needs.

Highlighting the importance of optimizing operations, particularly for insurance payments, Sidak Singh, cofounder of Care.fi, said, “The journey is upwards only from here. Based on our understanding of the market and the patients’ pain points, we have seen that optimizing the operational bit, especially for insurance when patients are eager to make payments and go home, is very important.”

Care.fi offers CareCred, which allows hospitals to raise finance against their invoices and provides real-time payment dues and transaction updates. The startup said, this system also enables hospitals to set up autopay to streamline repayment processes. Care.fi claims to have witnessed a 4x disbursal growth last financial year, reaching $48 million.

“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, cofounder of Care.fi.

Care.fi has obtained an NBFC license within two years of operation, positioning itself alongside major players such as CarePay, SaveIn, and Bajaj Finserv Health in healthcare financing.

The startup has collaborated with over 50 hospitals and assisted over 2,000 patients with their claims.

Healthtech Funding Landscape

The healthcare sector in India is evolving, with increasing spending on private healthcare, growing pharmaceutical manufacturing and services, and a developing healthcare technology ecosystem.

A report by Bain & Company highlighted that India remains a leader in healthcare deal value across the Asia-Pacific region, with 22 healthcare deals worth $4.6 billion in 2023.

The pace of investment deals in the Indian healthtech segment has been slow but steady. Last month, we reported on Alyve Health's $5.5 million Series A funding. The investment was led by Axilor Ventures and included participation from 1Crowd Fund, InHealth Ventures, and Trifecta Capital through venture debt.

Additionally, Cloudphysician raised $10.5 million (INR 87.3 Cr) in its Series A financing round, which was led by Peak XV Partners. In addition to Elevar Equity, Panthera Peak brought its venture debt expertise to the round.