Buy Now, Pay Later platform ZestMoney raises $50 Mn in Series C funding
Chandigarh, September 22, 2021: ZestMoney, India’s largest and fastest growing Buy Now, Pay Later platform today announced that it has raised $50 Mn from the leading global Buy Now Pay Later provider Zip Co Limited. This is part of a larger Series C fundraise which will see participation from existing investors.
Zip will acquire a minority shareholding in the company and a board seat as part of the investment.
Founded in Australia in 2013, Zip has a presence in 12 markets across five continents, serving more than 7.3m customers and over 51K merchants.
The company 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.
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, cheapest data plans in the world and boom in online shopping has propelled the demand for Pay Later offerings in the country.
India is also one of the most financially underpenetrated markets in the world. Credit cards have only 3% penetration, have hidden charges and are not accessible to everyone. 500 Mn people use digital payments and need a convenient and transparent payment option. The company uses Artificial Intelligence and Machine Learning data models to approve new to credit customers, giving it a distinctive edge in the market.
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.
Commenting on the development Lizzie Chapman, CEO & Co-founder, ZestMoney said, “We are thrilled to have Zip come onboard for the next phase in our journey of powering 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. 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. 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”.
Larry Diamond, CEO of Zip Co, “We are excited to partner with ZestMoney to drive fair and responsible payment solutions in India. 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.”