BNPL startup ZestMoney has said that it has raised $50 million from leading BNPL firm Zip Co Limited. This is part of a larger Series C fundraise that will see participation from existing investors. Zip Co Limited will acquire a minority stake and a board seat in the company as part of the investment. The deal also marks Zip’s entry into the Indian market.
ZestMoney will use the new investment to expand its product suite, deepen its transaction network, strengthen its balance sheet capability, and launch new business lines in insurance and savings. Lizzie Chapman, CEO and Co-Founder, ZestMoney, said, “We are thrilled to have Zip as the next step in our journey to drive affordability into the lives of Indian consumers. This is a deep confirmation of our position as the market leader in the Buy Now, Pay Later category in India.Lizzie Chapman further added that the shift to pay later solutions is a global phenomenon and represents young digital consumers looking for transparency, honesty and no hidden fees in financial products. He said that in the last one year, we have seen a growth of 5 times in the applications for BNPL on our platform.
Explain that ZestMoney allows customers to pay for products over time. The company said that its BNPL ticket size ranges from Rs 50 to Rs 5 lakh. ZestMoney allows its customers to transact across over 10,000 online sites and 75,000 physical stores across the country. The company said it uses artificial intelligence and machine learning data models to approve new credit customers.