BharatNXT Raises $1.2 Mn in Seed Round From Inflection Point Ventures

BharatNXT, a leading B2B Fintech platform in the financial technology sector, has successfully raised USD 1.2 million in a Seed Round. The funding was led by Inflection Point Ventures (IPV), with participation from notable investors including Spiral Ventures, Keiretsu Forums, and Panthera Peak Capital. The newly acquired funds will be utilized to invest in product development, expand the team size, and enhance the scalability of the core technology.

Investing in Product Development and Expanding Team Size

The funds raised in this round will primarily be directed towards further improving the platform's product offerings and expanding the team size. BharatNXT aims to increase its team by fourfold to support its growing user base and ensure seamless operations. The company recognizes the importance of keeping up with technological advancements in the industry and is committed to developing a cutting-edge platform that meets the evolving needs of its customers.

Enhancing Scalability and Implementing Governance Systems

In addition to product development and team expansion, BharatNXT plans to enhance the scalability of its core technology after raising the seed fund. By accommodating ten times the current growth, the platform will be able to handle increased transaction volumes efficiently. Furthermore, the company intends to implement top-notch governance systems, including PCI DSS, ISO 27001, and ISO 9001, to ensure the highest level of security and compliance. Effective risk management practices and controls will also be introduced to optimize outcomes and provide a secure environment for users.

Addressing the Credit Gap for Indian SMEs

Ankur Mittal, Co-Founder & COO of Inflection Point Ventures, emphasized the significant rise in digital transactions across various sectors in India over the last decade. However, credit card usage among Indian SMEs has remained relatively low, with credit utilization typically ranging between 15% to 20% of allocated limits. BharatNXT aims to bridge this credit gap by providing SMEs with access to formal credit for managing their working capital. The platform allows entrepreneurs with good CIBIL scores and pre-approved credit card limits to make business payments seamlessly and unlock additional payment days based on their credit card cycles.

BharatNXT’s technology platform has already been designed to accommodate ten times the current growth, providing a solid foundation for future expansion. Since its founding in 2022, the company has facilitated payments close to Rs 50 crore for approximately 10,000 SMEs. Currently, BharatNXT has grown 30 times and has processed around 4 lakh transactions with 100% accuracy. The company prides itself on maintaining a high on-time settlement ratio of 99.7%, ensuring timely and efficient payment processing for its customers.

Akshat Birla, Founder & CEO of BharatNXT, expressed optimism about the company's future growth. He revealed that they have achieved hockey stick growth, surpassing Rs. 1500+ Cr in GTV (Gross Transaction Value) and projecting to reach Rs. 1000+ Cr per month by the end of FY 23.

Aljo Joseph, Founder & CBO, is working towards diversifying revenue streams, building trust with transacting customers, and aims to run a profitable company within the next two quarters, closing FY 23 with Rs. 100+ Cr in revenue.

The B2B payments market in India holds immense potential for growth. The market for business payments made on credit cards is projected to reach USD 200-300 billion in the next three to five years, while currently, less than 2% of the USD 1.4 trillion B2B spends are made using credit cards. Additionally, there is a substantial amount of untapped credit limit on credit cards, with approximately USD 750 billion remaining unutilized out of the USD 900 billion annual allocation. This indicates a significant opportunity for BharatNXT to cater to SMEs and help them access the credit they need.

Founded in 2022, BharatNXT is a payment platform that enables small and medium-sized businesses to use credit cards for their B2B transactions. By integrating with various portals, the platform offers instant or T+1 settlements for all business payments, including GST, utility, and vendor payments. This extension of credit provides SMEs with better cash flow management capabilities, facilitating their operations and growth.

Inflection Point Ventures (IPV) is an angel investing platform with a strong network of over 7400 CXOs, HNIs, and professionals who collectively invest in startups. IPV provides monetary and experiential capital to new-age entrepreneurs and connects them with a diverse group of investors. Additionally, IPV recently announced the launch of Physis Capital, a USD 50 million CAT 2 AIF fund dedicated to investing in pre-Series A to Series B growth-stage start-ups.