Practo follows Ola, Paytm, Flipkart and others to launch co-branded credit cards
In line with the growing trend of startups partnering with banks and financial services providers to launch credit cards, Practo has rolled out one too.
The Bengaluru-based 'soonicorn' has launched a health-focused credit card for its customers, with benefits including free health checkups, unlimited online consultations, cashbacks, and more.
For every Rs 100 spent on the card, users earn 1 Practo HealthCash, which they can utilise to avail the platform's services.
Practo has partnered with RBL Bank and Mastercard for this. Users can apply for the Practo Plus Credit Card on its app or on RBL Bank's website starting on Thursday. The card will also offer customers access to domestic airport lounges twice every quarter.
Tencent-backed Practo, which is also India's most-funded healthtech startup, joins Ola, Paytm, and a few others to launch co-branded credit cards.
Earlier this year, Ola launched a Visa-powered Ola Money Credit Card with SBI, while Paytm unveiled the Paytm First Credit Card, co-branded and issued by Citibank India. Flipkart too launched a co-branded credit card with Axis Bank last month.
Whereas banks are looking to increase the adoption of cards by partnering with startups that have a massive reach in their respective segments, startups themselves are keen to add services to evolve into integrated, end-to-end platforms. They are also looking to gain insights into customers' spending patterns.
Harjeet Toor, Head – Retail, Inclusion & Rural Businesses, RBL Bank, stated: "Healthcare is a largely untapped segment and this partnership will be a great opportunity for the Bank and Practo to leverage on each other’s strength to capture the market."
Practo has raised about $251 million in VC money so far. Its last funding took place in June when it raised a Series E round of $17 million from Trifecta Capital and other undisclosed investors.
The startup is currently valued between $600-650 million, and is expected to achieve unicorn status by next year.
Tarun Bhambra, VP & Business Head, Practo, said: “The new credit card is focused on making healthcare more affordable for consumers. We all have regular spends on appointments, medicine and diagnostic tests. This card gives a unique ability to consumers to use their regular spends for household expenses for subsidising their monthly health spends on Practo platform."
(Edited by Rekha Bala)