Healthcare-focused fintech startup Care.fi has announced raising INR 6 crore in debt funding from RevX, marking another significant milestone in its journey to build an inclusive and resilient healthcare financing ecosystem in India. The proceeds will be strategically deployed to expand Care.fi’s operations around the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), the world’s largest health assurance scheme.
Founded in 2021 by Sidak Singh and Vikrant Agrawal, Care.fi provides tech-enabled financial solutions to healthcare providers, including hospitals, doctors, and allied suppliers. Within just two years, the startup secured a Non-Banking Financial Company (NBFC) licence, allowing it to further strengthen its service offerings to healthcare institutions. To date, Care.fi claims to have disbursed over INR 800 crore to more than 100 healthcare institutions across India.
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Strengthening Ayushman Bharat Ties
The funding comes as the Ayushman Bharat scheme continues to scale rapidly. As of June 2024, the program covers over 550 million beneficiaries and has over 29,000 empanelled hospitals nationwide. With an increasing share — nearly 60% — of hospital revenue now stemming from government-backed insurance schemes, Care.fi’s services are becoming more vital to hospital operations.
“Our focus has always been to ease the burden of operational and financial processes for healthcare providers,” said Sidak Singh, Co-founder of Care.fi. “With the Ayushman Bharat scheme becoming more centralised, our solutions can seamlessly plug into this evolving framework and help hospitals manage claims and cash flows more effectively.”
Echoing this sentiment, Vikrant Agrawal, Co-founder, added, “This infusion from RevX will not only allow us to scale our operations but also enable better support for hospitals onboarded under the Ayushman Bharat initiative. We see this as a powerful step toward building a resilient and inclusive healthcare financing ecosystem in India.”
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Previous Fundraises and Strategic Expansion
This latest funding follows earlier debt capital raises, including INR 8 crore in September 2024 — INR 5 crore from Wint Wealth and INR 3 crore in impact funding from Caspian Debt — as well as a INR 21 crore debt round from Trifecta Capital and UC Inclusive Credit in July 2024.
Care.fi’s broader strategy includes:
- Expanding its partnerships with small and medium-sized hospitals, especially those serving Ayushman Bharat and Employee State Insurance (ESI) scheme patients.
- Upgrading technology to backend operations to speed up claim settlements and cash flow management.
- Launching innovative insurance products using artificial intelligence (AI) technologies.
- Setting ambitious operational targets such as onboarding 50 new hospital partners and serving an additional 6,000 patients monthly.
- Pursuing a revenue growth target of 3-4x compared to the previous fiscal year, following an audited revenue of INR 8–9 crore last year.
Care.fi is positioning itself to become India’s first fully healthcare-focused fintech institution, with products like CareCred, designed to streamline financial management for healthcare businesses.
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Sector Context
Care.fi’s growth path is in sync with the increasing government healthcare spend which has gone up to 1.84% of India’s GDP and supporting AB-PMJAY. In a space where healthcare financing solutions are still evolving, Care.fi’s non-collateralized loans, lower interest rates and faster turnaround times are big differentiators that help it compete with traditional lenders and new age fintech players.
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Summary:
With this new INR 6 crore debt infusion from RevX, Care.fi is poised to enhance its capabilities in supporting hospitals under the Ayushman Bharat scheme, expand into new territories, and continue driving financial innovation in India’s healthcare sector.