Bangalore-based Zest Money Platform to buy now and pay laterOn Wednesday, he said he raised $ 50 million in a new round of funding from the Australian Zip as Indian companies are trying to invest in trends that are showing broader traction in some global markets.
The eight-year-old Australian company, which resides in 12 markets on five continents, has acquired a minority stake in ZestMoney as part of a new Series C funding round, the two said.
ZestMoney said in a statement that the new funding round has not ended as existing investors will also participate. The startup counts Goldman Sachs, Quona Capital, PayU and Xiaomi as early backers. The startup has raised over $ 110 million so far.
The market to buy now and pay later is still in its infancy in India, where only a small part of the population has a credit card. However, a few start-ups, including ZestMoney, Capital Float and LazyPay, are beginning to show traction in the traditional giant Bajaj Finance-dominated market.
Due to the low penetration of credit cards in India, few people in the country have a traditional credit score that banks rely heavily on establishing credit before issuing loans. In addition, small loans do not bring a favorable benefit to the bank, which reduces the incentive to write such a check.
ZestMoney states that it will evaluate other data points and use AI to help these people create profiles and become credible. The startup attracts more than 11 million users, has 25 banks and non-bank financial partners, and works with leading merchants such as Amazon, Flipkart, Google Pay and Xiaomi to provide BNPL services to its customers. ZestMoney is said to be present in over 75,000 physical stores and over 10,000 online sites.
Startup offers start at a minimum of Rs 50 (68 cents) to $ 6,777 and have a payback period of one to two years.
“This deeply supports our position as a market leader in the” Buy Now “category in India. The move to payer solutions is a global phenomenon, representing young digital consumers who want their financial products to be transparent, honest and free of hidden charges, “co-founded ZestMoney. Lizzie Chapman, the person and chief executive officer, said in a statement.
“India believes that traditional products such as credit cards will leap forward along with many other emerging markets and go straight to digital payment solutions. Last year, we saw BNPL’s applications quintupled on our platform. We continue to invest in deepening our partnership with our merchant network and recruiting the best talent. We have India as the world’s largest BNPL market in the next five years. I strongly believe that it will emerge. “
Indian buy now, pay later startup ZestMoney raises $50 million from Australia’s Zip – TechCrunch Source link Indian buy now, pay later startup ZestMoney raises $50 million from Australia’s Zip – TechCrunch