The Peak XV backed start-up aims to utilise the fund to establish partnerships with additional hospitals in new territories
Gurgaon-based healthcare focused fintech start-up Care.fi has raised Rs 8 crore in debt financing, comprising Rs 5 crore from Wint Wealth and an additional Rs 3 crore in impact funding from Caspian Debt. Back in July, the Peak XV backed start-up also secured Rs 21 crore in debt funding from Trifecta Capital and UC Inclusive Credit.
Following the fundraise, co-founders Sidak Singh and Vikrant Agarwal spoke to Outlook Business about the company’s further plan of action towards becoming one of the first micro finance banks for healthcare.
What is the plan of action now after the recent fundraising, where will the money be deployed?
Following our recent fundraising, our immediate plan of action is to strategically expand our operational footprint and enhance our service capacity. The funds will be dedicated to several key areas. Primarily, we aim to establish partnerships with additional hospitals in new territories, which will allow us to serve a larger patient base, particularly under initiatives like Ayushman Bharat and Employee State Insurance (ESI).
Additionally, we will invest in upgrading our technological infrastructure to support the increased patient volume and streamline operations. To ensure our team can deliver exemplary service as we scale, we will also allocate resources for staff training and development. This comprehensive approach is designed to facilitate significant business growth and position us to effectively respond to the growing demands of the healthcare sector.
What other new announcements can we expect in terms of business developments?
In the coming months, we will enter new geographical areas, where we will focus on establishing partnerships with medium and small hospitals that serve Ayushman Bharat patients. Also, we are launching innovative insurance products that leverage advanced technologies such as AI.
Who are your target customers, any targets you've set for yourself in terms of customers & revenue for this year?
Our primary target customers are small and medium-sized hospitals, particularly those dedicated to serving Ayushman Bharat patients. We also aim to broaden our partnerships to include multi-specialty and single-specialty hospitals.
This year, we have set ambitious targets, including onboarding 50 new hospital partners. From a patient volume perspective, we aim to serve an additional 6,000 patients monthly, leading to an annual increase of approximately 72,000 new patients. On the revenue front, after achieving an audited revenue of around 8 to 9 crores last financial year, we are targeting a significant growth range of 3- 4 times this fiscal year.
We see very few healthcare-focused fintech; however, there are other avenues to take loans for health. What are your plans to compete with them?
To effectively compete in the healthcare fintech landscape, especially against traditional banks and emerging alternatives, we have identified several crucial differentiators. One of our primary advantages is the absence of collateral requirements, making our financing options more accessible for healthcare providers.
Furthermore, we offer lower interest rates designed to alleviate the financial burden on hospitals, enabling them to invest in patient care without incurring excessive debt. Our quick turnaround times prioritize rapid approval processes, ensuring that funding is available when healthcare providers need it most, notably during critical moments such as patient discharges.