Digital lending platform LoanTap has acquired healthcare-focused fintech Unofin to expand its presence in India's growing healthcare finance space. The company said that this acquisition would help it better understand the healthcare domain by leveraging Unofin's relationships with hospitals, clinics, and medical equipment suppliers.
According to LoanTap, India's healthcare market is estimated to be around $140 billion, with more than $64 billion in the in-patient market. However, almost 70 per cent of the country's middle-class demography does not have healthcare insurance, while the remainder is underinsured.
"We believe healthcare financing is a niche segment with tremendous growth potential. Unofin's deep understanding of the industry will help us create innovative solutions that cater to the unique needs of healthcare professionals and institutions," said Satyam Kumar, co-founder and CEO of LoanTap.
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Following this acquisition, Kae Capital-backed LoanTap plans to introduce customised financing products for the sector, including equipment financing, working capital loans, and term loans.
Last month, the Pune-based start-up raised Rs 24 crore ($2.9 million) from global investment institution Lighthouse Canton, bringing its total equity funding to around $24.1 million. In 2019, LoanTap raised $12 million in equity in a Series B funding round and was backed by Kae Capital, India Quotient, Avaana Capital, 3one4 capital and Tuscan Ventures.
New Delhi-based Unofin has serviced over 12,000 customers with Rs 120 crore of gross loan disbursal since it was founded in 2018. It has partnerships with 1,600 healthcare service providers across seven nationwide cities.
