SaveIN expands its ‘Care Now, Pay Later’ healthcare service to capture more market share in India

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Amidst the rising uncertainties of the buy now, pay later (BNPL) industry around the globe, Indian fintech players are expanding their “care now, pay later’ product by entering into partnerships with healthcare providers to capture market share in the growing Indian BNPL space. For instance,

In April 2022, a credit-focused fintech firm, SaveIN, collaborated with an Indian chain of cardiac care clinics and hospitals, Madhavbaug, to expand its product offerings in the BNPL market. Under this partnership, SaveIN will be able to cater this deferred payment service in around 270 clinics and two hospitals under the Vaidya Sane Ayurved Laboratories Limited or Madhavbaug chain. According to the company, through this partnership, SaveIN will be able to reach around 500 clinics across the country.

Over the longer run, SaveIN intends to further expand its product to nearly 5,000 healthcare outlets across the top 15 Indian cities within a year. Through the product, SaveIN is aiming to create an integrated healthcare ecosystem that provides the customers with the immediate availability of healthcare through enhanced affordability.

SaveIN raised US$4 million (around Rs.30 crore) in its seed funding round to develop its BNPL product. The funding was backed by several investors and venture capitalists. Y-Combinator, 10X Group, Leonis VC, and other existing investors led the funding round, with participation from Nordstar, Rebel Fund, Pioneer Fund, Soma Capital, and SCM Advisors.

In December 2021, SaveIN introduced its BNPL product, Care Now, Pay Later, the deferred payment system, to break healthcare expenses into installments. Subsequently, SaveIN collaborated with around 100 healthcare providers in Delhi, Gurgaon, and Noida with specialization in dental, eye care, veterinary, diagnostics, dermatology, hair clinics, and many other segments. Through this installment system, healthcare providers can now offer flexible payment solutions, helping more people access healthcare in India.

Moreover, the company entered this space since elective healthcare in India is a growing market with dental, diagnostics, veterinary, cosmetics, and fertility having strong growth prospects in the country. Additionally, most of these services are not covered by insurance or instant credit programs, and people tend to spend a huge amount out of their own pockets on healthcare. Additionally, Indians are observed across demographic profiles to become increasingly sensitive to their physical and mental well-being. Therefore on-demand credit and flexible payment options are likely to see high adoption in the country.

According to PayNXT360, the medium to the long-term growth story of the BNPL industry in India remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 54.3% from 2022 to 2028. The BNPL Gross Merchandise Value in the country will increase from US$3.6 billion in 2021 to reach US$93.5 billion by 2028.

While the BNPL services have been around for quite some time, it is the global pandemic that has propelled the adoption and growth of the BNPL industry in India. With over a billion consumers and a large credit-averse population, BNPL is expected to disrupt the payments sector in India.

To know more and gain a deeper understanding of the BNPL market in India, click here.