FinTech startup BharatX Inc, operated by Aurorax Private limited, has raised $250,000 (around Rs 1.81 crore) in a pre-Seed funding round led by Java Capital, the company said in a statement on Tuesday.
The funding round saw the participation of angel investors like Anupam Mittal, founder of Shaadi.com and People Group, Ritesh Jain, ex-Chief Operating Officer of HSBC, Faiz Mayalakkara, Director of Investments at UAE’s sovereign wealth fund, Amit Kumar Singh, ex-Chief Business Officer, Indialends.com and LetsVenture AIF, among others.
The company said that it plans to utilise the funds to deliver seamless embedded credit experiences on many consumer-facing platforms across India.
Founded in 2020 by Mehul Nath Jindal, Eeshan Sharma, Shyam Murugan and Siddharth Venu, BharatX enables embedded credit on consumer-facing platforms with zero risk and easy integration.
The founders are currently pursuing their degree course from the National Institute of Technology (NIT), Trichy and the startup was selected by Lightspeed Venture Partners for the Winter 2021 cohort of its Extreme Entrepreneurs programme.
"Our goal with BharatX is to enable easy and cheap access to credit to every middle-class Indian who deserves it with zero document flow. Embedded credit allows us to acquire users at much lower costs, while also creating value for the platform we partner with, be it through journeys like Khata, Try & Buy, Pay Later, Credit Line, etc,” Jindal said.
According to the statement, BharatX does not require a lot of documentation from target users and has a higher approval rate for people applying for credit. The company claims that their Khata plan for daily essentials sellers, which allows people to buy groceries and household essentials and pay in the following month, is the most popular embedded credit journey by BharatX.
Java Capital is a venture capital firm run by career venture capitalists and startup ecosystem enablers with over 15 years of experience. Their primary focus areas include sectors such as fintech, health tech, software as a service (SaaS), mobile internet, and deep technology.
In similar deals, Rupifi Technologies Pvt. Ltd, which offers embedded lending solutions to business-to-business (B2B) marketplaces raised venture debt from Trifecta Capital.
Earlier this month, Uthaan Technologies Pvt Ltd, which operates Microfinance.ai, a fintech startup raised $200,000 (Rs 1.5 crore) in a Pre-Seed funding round led by We Founder Circle (WFC).
Last month, fintech startup Recordent raised $400,000 (around Rs 3 crore) in an Angel funding round from IIM Calcutta Innovation Park, the family office of Kantamaneni, and other investors from India and the US.