Bengaluru-based fintech startup BharatX has raised $4.5 million in seed funding from Y Combinator, 8i Ventures, Multiply Ventures, Soma Capital and other investors to enter the Indian market. The company said on May 12. The Y-Combinator-backed startup plans to use the funding to build and grow its team, develop products and expand its footprint.

Existing investor Java Capital also participated in this financing round, including Dropbox co-founder Arash Ferdowsi, Razorpay CEO and co-founder Harshil Mathur, Razorpay founder Shashank Kumar, Varun Alagh, and several other big angels participated in this round of financing. Mamaearth co-founder and CEO Kunal Shah, CRED founder and CEO, Dunzo co-founder Ankur Aggarwal and Reliance Jio president Vikas Choudhury.

“We want to make it easier for India’s middle class to access credit products they deserve but don’t currently have access to while setting the bar for world-class user experience and customer service,” said BharatX co-founder and CEO Mehulkin Dahl. BharatX aims to grow the credit stack by launching new verticals such as UPI credit, 3-day payments and 15/30-day cycle products like credit cards.

“Our B2B2C business model allows us to gain users’ trust through our partners’ brand influence and enables us to reach millions of users at scale at almost zero cost. With the support of a new round of investors, we hope to expand more rapidly and aggressively shortly,” Jindal said.

As a consumer credit company, BharatX offers embedded credit by partnering with brands and websites, enabling a feature in its app to serve customers. Through its application programming interface (API) and software development kit (SDK), it operates white-label Buy Now Pay Later and other credit products on more than 50 consumer-facing platforms through its