Fintech startup ZestMoney raises $50 million in series C funding round led by Zip Co
An Indian ‘buy now, pay later’ platform, ZestMoney, has raised $ 50 million from Australian peer Zip Co Ltd. in its Series C funding round, at a time when BNPL solutions are gaining grip among consumers at home and abroad.
Zip will acquire a minority shareholding in the fintech startup and a board as a part of the investment, according to a statement. Zest Money will utilise the capital to broaden its product suite, strengthen its balance sheet, deepen the merchant network and launch new business lines in insurance and savings.
“We believe India-along with many other emerging markets-will leapfrog traditional products like credit cards, going straight to digital payment solutions. Over the last year, we have seen applications for BNPL go up by 5 X on our platform,” Chapman said. “We continue to invest in deepening partnerships with our merchant network and hiring the best talent. We strongly believe India will emerge as the largest BNPL market in the world over the next five years.”
ZestMoney was founded in 2015 by Priya Sharma, Ashish Anantharaman and Lizzie Chapman. The platform uses machine learning and artificial intelligence to onboard customers and offers them BNPL plans of ticket sizes ₹ 50 to ₹ 5 lakh payable over 30 days to 24 months. It has collaborated with 25 banks and non-banking lenders for BNPL solutions and provides financial counselling, credit information and options to help users build a good credit history.
Currently, ZestMoney has 11 million registered users with a merchant network of 75,000 physical and 10,000 online stores. It also secured the corporate agent licence from the Insurance Regulatory and Development Authority of India (IRDAI) and offers insurance products to users on its platform.
“While Buy Now, Pay Later is emerging as a preferred mode of payment globally, in India it also plays a crucial role in driving access to credit,” Zip Co CEO Larry Diamond said. “With more people using digital payments and online shopping, ZestMoney can positively impact hundreds of millions of lives in the coming years.
Zip will acquire a minority shareholding in the fintech startup and a board as a part of the investment, according to a statement. Zest Money will utilise the capital to broaden its product suite, strengthen its balance sheet, deepen the merchant network and launch new business lines in insurance and savings.
“We believe India-along with many other emerging markets-will leapfrog traditional products like credit cards, going straight to digital payment solutions. Over the last year, we have seen applications for BNPL go up by 5 X on our platform,” Chapman said. “We continue to invest in deepening partnerships with our merchant network and hiring the best talent. We strongly believe India will emerge as the largest BNPL market in the world over the next five years.”
ZestMoney was founded in 2015 by Priya Sharma, Ashish Anantharaman and Lizzie Chapman. The platform uses machine learning and artificial intelligence to onboard customers and offers them BNPL plans of ticket sizes ₹ 50 to ₹ 5 lakh payable over 30 days to 24 months. It has collaborated with 25 banks and non-banking lenders for BNPL solutions and provides financial counselling, credit information and options to help users build a good credit history.
Currently, ZestMoney has 11 million registered users with a merchant network of 75,000 physical and 10,000 online stores. It also secured the corporate agent licence from the Insurance Regulatory and Development Authority of India (IRDAI) and offers insurance products to users on its platform.
“While Buy Now, Pay Later is emerging as a preferred mode of payment globally, in India it also plays a crucial role in driving access to credit,” Zip Co CEO Larry Diamond said. “With more people using digital payments and online shopping, ZestMoney can positively impact hundreds of millions of lives in the coming years.
