Total amount raised
$120.9 Millions
Latest funding date
Location
ZestMoney has successfully raised funds through multiple rounds, with the last funding round being on August 8, 2023. The company has attracted a diverse group of investors, including PayU, Ribbit Capital, Omidyar Network, Scarlet Capital, and Zip.
Acquired by DMI Group on January 17, 2024, ZestMoney continues to innovate in the fintech space by offering digital EMI without the need for a credit card. Keep reading to explore the intricacies of ZestMoney's fundraising journey and the investors backing this innovative platform.
What Is ZestMoney?
ZestMoney, founded in 2015 by Priya Sharma, Lizzie Chapman, and Ashish Anantharaman, is a fintech company headquartered in Bangalore, Karnataka, India. The company operates in the financial technology sector, offering digital EMI services without the need for a credit card.
With an employee count ranging from 501 to 1000, ZestMoney aims to make EMI payments accessible to everyone through mobile technology, digital banking, and AI. The platform provides flexible repayment options, instant approval, and personalized credit limits, making it a popular choice for consumers looking for financial flexibility.
How Much Funding Has ZestMoney Raised?
- Seed Round
- Amount Raised: $2M
- Date: September 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and develop its digital EMI platform.
- Series A
- Amount Raised: $6.5M
- Date: December 2016
- Lead Investors: PayU GPO
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's reach and enhance technological capabilities.
- Series A
- Amount Raised: $13.4M
- Date: August 2018
- Lead Investors: Xiaomi
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market penetration.
- Debt Financing
- Amount Raised: Not publicly disclosed
- Date: January 2019
- Lead Investors: Alteria Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support working capital needs and operational expenses.
- Series B
- Amount Raised: $20M
- Date: April 2019
- Lead Investors: Quona Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the customer base and enhance product offerings.
- Series B
- Amount Raised: $15M
- Date: December 2019
- Lead Investors: Goldman Sachs
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen the company's financial position and support growth initiatives.
- Venture Round
- Amount Raised: ₹848.6M
- Date: March 2020
- Lead Investors: Primrose Hills Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technological infrastructure and expand market reach.
- Series C
- Amount Raised: $50M
- Date: September 2021
- Lead Investors: Zip
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and improve product offerings.
- Debt Financing
- Amount Raised: ₹200M
- Date: June 2022
- Lead Investors: Alteria Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational expenses and growth initiatives.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: August 2023
- Lead Investors: Scarlet Capital, Zip
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To drive the business towards profitability and sustain operations.
Total Amount Raised: $106.9M
Current Valuation: Not publicly disclosed
Key Investors
- Alteria Capital
- Details: Alteria Capital is a venture debt fund that provides financing to early and growth-stage companies. They are known for supporting startups with flexible debt solutions.
- Investment Focus Areas: Early-stage companies, growth-stage companies.
- Notable Investments: Dunzo, Lendingkart.
- Zip
- Details: Zip is a global Buy Now, Pay Later (BNPL) company that offers flexible payment solutions to consumers. They aim to make financial services more accessible and transparent.
- Investment Focus Areas: Consumer finance, fintech.
- Notable Investments: QuadPay, Twisto.
- Primrose Hills Ventures
- Details: Primrose Hills Ventures is a venture capital firm that invests in technology startups. They focus on identifying and nurturing innovative companies.
- Investment Focus Areas: Technology startups.
- Notable Investments: Information not provided.
- Goldman Sachs
- Details: Goldman Sachs is a leading global investment banking, securities, and investment management firm. They provide a wide range of financial services to a substantial and diversified client base.
- Investment Focus Areas: Technology, finance, healthcare.
- Notable Investments: Uber, Facebook.
- Quona Capital
- Details: Quona Capital is a venture capital firm focused on fintech. They invest in companies that aim to improve access to financial services in emerging markets.
- Investment Focus Areas: Financial inclusion, fintech.
- Notable Investments: Konfio, Creditas.
What's Next for ZestMoney?
ZestMoney stands at the cusp of significant growth, driven by its extensive network of over 17 million consumers and 10,000 online partners. The company aims to become a leading checkout financing platform, leveraging its partnerships with top lenders to offer competitive financing options. This vast market opportunity positions ZestMoney to capitalize on the rapidly growing Pay Later and EMI financing sector.
With recent capital infusions from investors like Quona Capital and Omidyar Network, ZestMoney is well-poised for future fundraising opportunities. The company's strategic pivot to offer its platform as a white-label solution for other digital lenders could attract further investments, supporting its drive towards profitability and expansion.
However, challenges remain. Recovering from the failed acquisition deal with PhonePe and maintaining low non-payment rates while expanding its consumer base are critical hurdles. Navigating regulatory challenges and intense competition in the fintech space will also test ZestMoney's resilience as it strives to solidify its market position.
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