Health fintechs are creating a new cashless pathway, aiming for a destination worth Rs 48,000 crore, with a focus on India's 'missing middle.'

A new wave of health fintechs, largely emerging in the post-Covid era, is transforming healthcare financing in India. These startups are targeting the more than ₹48,000 crore (US$5.7 billion) set aside by the government for health initiatives in the 2024–25 budget, viewing it as a significant opportunity. While insurance coverage in India has increased since the pandemic, benefiting large hospitals, both state-funded and high-end private facilities, a major segment of the healthcare system remains overlooked: small, private hospitals, which account for nearly 85% of the industry. This segment, often disorganized and underfunded, is referred to as the "missing middle."