Super.money Acquires BharatX to Strengthen BNPL and Credit-on-UPI Offerings

Super.money, a fintech startup backed by Flipkart, has acquired BharatX, a checkout financing platform supported by Y Combinator, for an undisclosed amount. This all-cash deal is set to enhance super.money’s credit and payment offerings, with a particular emphasis on Buy Now Pay Later (BNPL) and credit-on-UPI solutions.

BharatX specializes in seamless checkout financing, enabling users to split payments into installments at the time of purchase. With this acquisition, super.money aims to expand its presence in the lending space and cater to the growing demand for flexible credit solutions in India.

As part of the acquisition, BharatX’s core team will join super.money to enhance its credit-on-UPI offerings. The collaboration will integrate BharatX’s expertise in checkout financing and documentation-free credit solutions.

Super.money plans to introduce checkout financing for direct-to-consumer (D2C) and e-commerce brands, including Flipkart, starting with consumer durables. The company intends to leverage equated monthly installments (EMIs) and Buy Now Pay Later (BNPL) options to expand its reach. CEO Prakash Sikaria emphasized that the acquisition is primarily technology-driven, allowing super.money to enhance its UPI-based credit services.

BharatX has partnered with over 200 brands and four banking institutions to provide seamless financing at checkout. The company previously raised $4.5 million from investors such as Y Combinator, Soma Capital, Java Capital, and Multiply Ventures. With this acquisition, super.money aims to scale these partnerships while also exploring new banking collaborations.

Super.money has rapidly grown on the UPI platform, registering a 24% month-on-month increase in transactions, reaching 125 million in January. It is currently the sixth-largest third-party application provider (TPAP) on UPI, offering fixed deposit booking with small finance banks and a co-branded RuPay credit card in collaboration with Utkarsh Small Finance Bank.

The company is also working on a secured BNPL offering, the first in the category. While discussions with BharatX’s existing brand partners are still ongoing, Sikaria expects a significant portion of them to transition to super.money’s platform. Additionally, the firm is considering new banking partnerships to extend its credit services under revised terms.

BharatX, founded in 2019, specializes in checkout financing, allowing customers to pay in installments at checkout. Super.money sees BNPL and EMIs as entry-level financial products that can help onboard users into its broader financial ecosystem. The acquisition strengthens super.money’s position in the credit market, and Flipkart, which backed the company with $15-20 million in 2023, is reportedly in talks to lead a new $35-40 million funding round with external investors.