Founded by (L-R) Priya Sharma, Ashish Anantharaman and Lizzie Chapman in 2015, ZestMoney is a digital omnichannel BNPL player with a merchant network of 10,000 online and 75,000 physical stores.
Buy Now Pay Later (BNPL) startup ZestMoney said on September 22 that it had raised $50 million from Australian BNPL fintech Zip Co. This is a part of a larger Series C fundraise which will see participation from existing investors, the company added.
The company’s existing investors include Goldman Sachs, Quona Capital, Xiaomi and Alteria Capital among others.
Through the investment, Zip will acquire a minority shareholding in the company and a board seat. This also marks Zip’s entry into the Indian market. Founded in Australia in 2013, Zip currently has a presence in 12 markets across five continents.
ZestMoney said that it had plans to deploy the funds to expand the product suite, deepen the transaction network, strengthen its balance sheet capacity and launch new business lines in insurance and savings.
This fundraise comes at a time when the Indian market is increasingly moving towards higher adoption of various credit instruments including BNPL. ZestMoney also acquired a corporate agent insurance license from the Insurance Regulatory and Development Authority of India (IRDAI) in August. Moneycontrol was the first to report on the same.
Lizzie Chapman, CEO & Co-founder of ZestMoney said, “The investment by Zip is a deep validation of our position as market leader in the Buy Now Pay Later category in India. The shift towards Pay Later solutions is a global phenomenon and represents young digital consumers looking for transparency, honesty and no hidden charges in financial products. We believe India will leapfrog traditional products like credit cards, along with many other emerging markets, going straight to digital payment solutions.”
India’s credit card penetration is only three percent, while 500 million Indians use digital payments.
“Over the last year we have seen applications for BNPL go up by 5X on our platform. 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 5 years,” Chapman added.
Larry Diamond, CEO of Zip Co said “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. With more people using digital payments and online shopping, ZestMoney can positively impact hundreds of millions of lives in the coming years. With deep partnerships with online and offline merchants and lending partners, Zest Money is poised to accelerate growth as the market develops. We have been incredibly impressed with the founders and leadership team and look forward to the next stage of the ZestMoney journey.”
Founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015, ZestMoney is a digital omnichannel BNPL player with a merchant network of 10,000 online and 75,000 physical stores. It has a customer base of 11 million, 70 percent of whom are from Tier II and III markets and are first-time credit seekers.Internet Explorer Channel Network