Digital credit platform ZestMoney raises $50 million in Series C round

The round is also expected to see participation from existing investors of ZestMoney.

After fundraising, ZIP will acquire a minority stake in the company and will have a board seat as part of the investment.

Founded in Australia in 2013, Zip has a presence in 12 markets across five continents, serving over 7.3 million customers and over 51,000 merchants.

According to ZestMoney, it will use the funds to expand its product suite, deepen its transaction network while launching new business lines including insurance and savings.

A six-year old startup, ZestMoney allows customers to pay for products over time through its Pay Later offerings in the country.

ZestMoney offers the full spectrum of Buy Now, Pay Later, credit cycles ranging from 30 days to 24 months, and ticket sizes. ₹5 lakhs. The company said it allows customers to transact across 10,000 online sites and 75,000 physical stores across the country.

“We are thrilled to partner with ZIP for the next step in our journey of powering affordability in the lives of Indian consumers. This is a deep recognition of our position as the market leader in the Buy Now Pay Later category in India. The shift to pay later solutions is a global phenomenon and represents young digital consumers seeking transparency, honesty and no hidden fees in financial products.”

“We are confident that India, along with many other emerging markets, will drive traditional products such as credit cards directly towards digital payment solutions. In the last one year, we have seen a five-fold increase in applications for BNPL on our platform. We continue to invest in deepening partnerships with our merchant network and hiring the best talent,” Chapman said.

ZestMoney currently partners with 25 banks and non-banking finance companies to enable Buy Now, Pay Later for consumers across the country.

The company has recently obtained a Corporate Agent License from the Insurance Regulatory and Development Authority of India (IRDAI) to enable and offer insurance products to users on its platform.

“We are excited to partner with ZestMoney to drive fair and responsible payment solutions in India. While Buy Now, Pay Later is emerging as the preferred mode of payment globally, it also plays a vital role in increasing access to credit in India. With more people using digital payments and online shopping, ZestMoney could positively impact the lives of millions of people in the years to come,” said Larry Diamond, CEO of Zip Company.

Currently, ZestMoney claims that around 70% of their customers are from Tier II and III markets, most of whom are getting formal loans for the first time in their lives.

ZestMoney claims that it currently has 11 million registered users on its platform.