ZestMoney will use the freshly raised funding in improving its product, grow its transaction network, strengthen its balance sheet capacity and launch new business lines in insurance and savings.
Fintech startup ZestMoney which works on Bay Now & Pay Later has raised $50 Million in Series C round from Zip Co Limited. ZestMoney will dilute its stake and Zip will acquire a minority shareholding in the company and have a board seat as a part of the investment.
Lizzie Chapman, CEO and Co-founder, ZestMoney said, “We are excited and happy to have Zip come on board in the next phase of our journey to empower with affordability in the lives of Indian consumers. This is a deep validation of our position as market leader in the Buy Now, Pay Later category in India.”
Pay Later solutions is a global phenomenon especially when its young digital consumers are concerned who are looking for transparency, honesty and no hidden charges in financial products.
She added that India has a great potential in straight to digital payment solutions rather than traditional products like credit cards.
“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 five years.”
Preferred mode of payment
Founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015, ZestMoney allows customers to pay for products over time but enjoy them now. Increasing smartphone penetration, the cheapest data plans in the world, and a boom in online shopping have propelled the demand for Pay Later offerings in India.
Larry Diamond, CEO of Zip Co, said they were excited to partner with ZestMoney to “drive fair and responsible payment solutions in India”.
“With more people using digital payments and choosing 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,” Larry said.
ZestMoney offers the entire spectrum of Buy Now, Pay Later offering from 30 days to 24 months, and ticket sizes ranging from Rs 50 to Rs 5 lakh. It is a completely digital omnichannel BNPL player in the country, allowing customers to transact at 10,000+ online sites and 75,000 physical stores across the country.