Fintech startup BharatX on Tuesday announced that it has raised $250,000 (₹1.81 crore) in a pre-seed round from marquee angel investors and other industry veterans to boost Embedded Credit in the Indian market.

The startup enables Consumer facing platforms to offer Credit-as-a-Feature .

Java Capital (Lead investor), Anupam Mittal, Founder / 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-CBO, and LetsVenture AIF participated in the funding round.

"The funding will help drive BharatX’s strategy to deliver seamless Embedded Credit experiences on many consumer facing platforms across India, with zero credit risk and zero operational headaches for the platforms," the startup said in an official release.

Customers of the platforms will be able to access a white-label experience with no separate app download required.

Mehul Jindal, founder of BharatX, said, “ Our goal with BharatX is to enable easy and cheap access to Credit to Every Middle Class Indian who deserves it with a 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.”

He added, “We are proud to say that, we do not bias against factors like gender, age, etc and our approval rates are multiples higher than the industry benchmarks, as our focus is on access to credit. We are excited and very grateful to our investors for putting their belief in us to solve this problem which has plagued Indians for far too long. We hope to bring some exciting and disruptive tech to the market soon.”

BharatX's is “Khata” plan for daily essentials sellers is one of its most popular offerings. It allows people to buy groceries and household essentials, and pay next month, similar to the offline Khata that many Kirana’s offer offline to their customers. It also has a “Pay-in-3” option, which allows the customer to split their purchases into three interest-free installments.

BharatX’s “Try-and-Buy” feature allows customers to try out a garment and pay upto 5-10 days after delivery. It also offers pay later for food delivery and payment apps, and postpaid features for ride-hailing apps.

Its “Design-Your-Own-Credit” feature also allows merchants to develop their own payment method, with technology powered by BharatX.

Karteek Pulapaka, Partner, Java Capital, said, “We are thrilled to partner with BharatX and back the exceptional founding team led by Mehul Jindal. BharatX offers plug-and-play credit products through an ultralight SDK that can be integrated by brands, e-commerce stores, merchants and their own mobile apps."

"The next wave of growth in India will come from its deepening internet penetration and increased data usage. However, much of this growth depends on how easily customers can access credit, and if it is affordable. BharatX can revolutionise how this wave of internet shoppers avail formal credit. We are happy to be part of this mission," added Pulapaka.