Care.fi Raises $2.6 Million to Transform Healthcare Financing with Trifecta Capital and UC Inclusive Credit
In a significant move set to reshape healthcare financing, fintech startup Care.fi has successfully raised $2 million in debt from venture debt firm Trifecta Capital, and an additional $600,000 from TV Mohandas Pai’s Aarin Capital-backed impact-focused NBFC, UC Inclusive Credit. This fresh influx of funds aims to propel Care.fi’s mission to become a healthcare-focused small finance bank, providing crucial supply chain financing for hospitals, pharmacies, manufacturers, and suppliers within the healthcare sector.
Empowering Healthcare with Financial Innovation
Sidak Singh, Co-founder of Care.fi, revealed that the raised funds will be pivotal in expanding the company’s book size. Care.fi has witnessed a remarkable 4x growth in disbursals over the last financial year, reaching an impressive $48 million. Singh emphasized the upward trajectory of their journey, highlighting the critical need to optimize operational aspects, particularly in insurance processing, to enhance patient experience during payment and discharge processes.
Innovative Solutions for Healthcare Financing
Care.fi’s flagship product, CareCred, is revolutionizing healthcare financing by allowing hospitals to secure finance against their invoices. This innovative solution provides real-time updates on payment dues and transactions, and hospitals can even set up autopay to streamline the repayment process. Vikrant Agrawal, Co-founder of Care.fi, shared that the funding will be strategically deployed to expand their business and strengthen their team with fresh talent, aiming to achieve new milestones.
A Promising Future in Healthcare Financing
Care.fi has already made a significant impact, working with over 50 hospitals and assisting more than 2,000 patients with their claims. The company’s growth aligns with broader trends in India’s healthcare sector, which is becoming a hub for private equity investment. According to a Bain & Company report from January, India is expected to host substantial healthcare deals, maintaining its leadership in deal value across the Asia-Pacific region.
The Rise of Private Healthcare Investment
The report indicated that India likely hosted 22 healthcare deals in 2023, with a deal value projected at $4.6 billion, closely following the $4.7 billion from the previous year. The growing expenditure on private healthcare, coupled with an expanding pharma manufacturing and services sector, and an evolving healthcare technology ecosystem, are key drivers attracting private equity investments in India.
