Flipkart Group’s UPI-based payments app, super.money, has made a strategic move in the fintech space by acquiring the Y Combinator-backed checkout financing platform, BharatX, for an undisclosed amount. This acquisition aims to significantly enhance super.money’s offerings, particularly in the rapidly growing Buy Now, Pay Later (BNPL) sector, where consumer demand for flexible, credit-based solutions is on the rise. With the acquisition of BharatX, super.money is poised to further solidify its position as a leader in India’s financial services ecosystem.

The primary objective of this acquisition is to integrate BharatX’s core team and its innovative technology with super.money’s existing platform. The core team from BharatX will be working closely with super.money to expand its credit-on-UPI offerings, which is expected to be a game-changer in the Indian market. By leveraging BharatX’s deep expertise and technology in checkout financing, super.money will be able to offer more flexible and accessible credit solutions to consumers, ultimately enhancing the overall user experience.

Prakash Sikaria, the CEO and founder of super.money, highlighted the significance of this acquisition, stating, “We see credit-on-UPI as a game-changer for financial access in India. By leveraging BharatX’s platform, we are developing unique credit-on-UPI products that align with our shared vision of financial inclusion, empowering millions to transact with ease.” Sikaria’s statement reflects the company’s long-term goal of improving financial accessibility for Indian consumers, particularly those who are underserved by traditional banking systems.

Credit-on-UPI, which refers to the ability to offer credit directly via UPI (Unified Payments Interface) transactions, is an emerging trend in the Indian fintech ecosystem. By integrating this offering with its platform, super.money is looking to provide a seamless and efficient way for users to make purchases and access credit without the need for physical cards, complex paperwork, or a credit score check. This solution is expected to democratize access to financial products, making it easier for consumers to access credit directly at the point of sale, whether online or offline.

Founded in 2019, BharatX is a Bengaluru-based fintech startup that has quickly made a name for itself in the checkout financing space. The company has partnered with over 200 brands for checkout financing through collaborations with four banking partners. BharatX’s platform enables consumers to make purchases on e-commerce platforms and pay for them in installments, a feature that has gained significant traction among younger consumers who prefer flexibility in their payment options. According to the company’s website, BharatX’s product suite includes instant credit, zero-interest financing, and flexible repayment options, which have made it a popular choice among consumers and brands alike.

BharatX had raised $4.74 million across two funding rounds, with backing from notable investors such as Y Combinator, Multiply Ventures, Soma Capital, Java Capital, and 8i Ventures. The startup’s innovative approach to financial inclusion, particularly in the underserved segments of the Indian population, has garnered significant attention from investors and industry observers alike. BharatX’s model of providing credit without the need for documentation or a credit score has proven to be highly effective, allowing it to scale quickly and reach hundreds of thousands of consumers across the country.

Mehul Jindal, the founder of BharatX, spoke about the acquisition, stating, “Over the last four years, starting out in college, we were able to provide credit to hundreds of thousands of consumers in India profitably, without any documentation or credit score needed. Via this acquisition, we will take our product to newer heights using the wider distribution with super.money.” Jindal’s comments underscore the company’s success in building a scalable and profitable model for providing credit to a large and diverse customer base, many of whom were previously excluded from traditional banking services.

With this acquisition, super.money aims to leverage BharatX’s platform and infrastructure to reach a wider audience and further enhance its credit-on-UPI solutions. The fintech giant is already well-established in India’s payments ecosystem, thanks to its association with Flipkart, one of the country’s largest e-commerce platforms. Super.money is expected to utilize Flipkart’s vast user base and e-commerce infrastructure to promote its new BNPL offerings and ensure widespread adoption of its credit products.

The BNPL sector in India has seen explosive growth in recent years, driven by the increasing adoption of digital payments and the growing demand for flexible credit options. Consumers, particularly millennials and Gen Z, are increasingly seeking alternatives to traditional credit cards and loans, preferring the simplicity and flexibility offered by BNPL services. According to recent reports, the Indian BNPL market is expected to grow significantly in the coming years, fueled by increasing e-commerce penetration, smartphone usage, and internet connectivity.

As the BNPL landscape becomes more competitive, the integration of BharatX’s technology and expertise into super.money’s platform will likely give the company a significant edge in the market. With the ability to offer seamless, instant credit through UPI transactions, super.money is well-positioned to capture a larger share of the growing demand for alternative credit solutions in India.

In addition to expanding its product offerings, this acquisition also reflects super.money’s broader strategy of fostering financial inclusion in India. By providing credit to consumers without the need for extensive documentation or credit history, the company is empowering millions of people who might otherwise have been excluded from traditional financial systems. This approach aligns with the Indian government’s vision of creating a more inclusive financial ecosystem, which aims to bring more people into the formal financial fold.

The combined efforts of super.money and BharatX are expected to drive significant innovation in India’s financial services industry, particularly in the areas of digital payments, BNPL, and credit-on-UPI solutions. As the fintech sector continues to evolve, super.money’s acquisition of BharatX positions the company as a key player in the next phase of financial inclusion in India, helping millions of consumers access the credit they need to make purchases and improve their financial well-being.

In conclusion, the acquisition of BharatX by super.money represents a significant milestone in the evolution of India’s fintech ecosystem. By integrating BharatX’s innovative checkout financing platform with its own UPI-based payments system, super.money is positioning itself as a leader in the rapidly growing BNPL market. With a shared vision of financial inclusion and empowerment, the two companies are set to revolutionize the way millions of Indian consumers access credit and make payments, setting the stage for a more inclusive and digitally enabled financial future.

Author: kashish ghosh