In a strategic move that underscores the growing confluence of fintech and healthcare in India, Care.fi, a Gurugram-based healthcare-focused fintech startup, has raised ₹6 crore in debt funding from RevX. The capital will be primarily used to enhance Care.fi’s platform capabilities in supporting hospitals engaged with the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)—the world’s largest government-funded health assurance programme.
The latest funding infusion is set against the backdrop of AB-PMJAY’s rapid expansion. As of June 2024, the scheme boasts a coverage of over 550 million beneficiaries and an ecosystem of 29,000+ empanelled hospitals across the country. The scale and complexity of this initiative have created a burgeoning need for seamless, tech-driven financial solutions—one that Care.fi aims to address directly.
Transforming Hospital Finance Through Fintech
Founded in 2021 by Sidak Singh and Vikrant Agrawal, Care.fi offers tech-enabled working capital and credit solutions tailored for hospitals, medical professionals, and allied healthcare vendors. The company has already disbursed over ₹800 crore in loans across more than 100 healthcare institutions, helping providers better manage operational costs, procurement, and claim cycles. Notably, Care.fi also obtained a Non-Banking Financial Company (NBFC) licence within two years of inception—positioning it uniquely to serve the financing needs of India’s healthcare ecosystem.
“Our focus has always been to ease the burden of operational and financial processes for healthcare providers. With the Ayushman Bharat scheme becoming more centralised and 60% of hospital revenue now coming from insurance schemes, our solutions can seamlessly plug into this evolving framework and help hospitals manage claims and cash flows more effectively,” said Sidak Singh, Co-founder of Care.fi.
Echoing the sentiment, Vikrant Agrawal, Co-founder, Care.fi, 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.”
Implications for the Broader Healthcare Ecosystem
Care.fi’s targeted approach to healthcare financing comes at a pivotal time when financial efficiency and claim turnaround are crucial for hospital sustainability, especially in tier 2 and tier 3 regions. By streamlining fund disbursement and claims management, Care.fi is helping hospitals reduce receivable cycles, thereby freeing up critical working capital that can be reinvested in infrastructure, technology, and patient care.
The move is also significant from a policy implementation standpoint. As India pushes toward universal health coverage, enabling private hospitals, which form a significant part of the Ayushman Bharat delivery network, with accessible and agile financial tools is essential. Fintech players like Care.fi can act as enablers, ensuring smoother onboarding, faster reimbursements, and compliance management for healthcare providers.
For India’s healthcare industry, this development signals a maturing financial layer within India’s healthcare system—one that aligns with the goals of digitisation, decentralisation, and inclusion. As more startups innovate around healthcare finance, the industry can expect a robust shift towards data-driven, patient-centric care delivery models, supported by sustainable financial operations.
With this fresh capital injection, Care.fi is poised to deepen its collaboration with India’s national health infrastructure and further embed itself into the backbone of healthcare service delivery. As the lines between healthcare, technology, and finance continue to blur, such initiatives are instrumental in building a future-ready, financially viable healthcare system for Bharat.
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