Consumer financing startup ZestMoney on Thursday said it has raised $15 million as part of its ongoing Series B equity round led by Goldman Sachs. The company’s existing investors Naspers Fintech, Quona Capital, and Flourish (Omidyar Network’s fintech investment arm) also participated in the round.
Earlier, in April, ZestMoney announced that it had already raised $20 million as part of its ongoing Series B round from Australian fintech investor Reinventure, with existing investors Ribbit Capital, Omidyar Network, and PayU, participating as a part of the round.
Co-founded by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman in 2015, ZestMoney is an EMI financing platform in India, which looks to cater to credit needs of individuals who currently have no access to credit cards or any other formal financing options because of insufficient credit history.
Talking about where the investment will be used, Lizzie Chapman, co-founder and CEO, ZestMoney, said,
“The capital we’ve raised in this latest round will enable us to accelerate product development, grow our strategic partnerships, and scale our platform further to help support the dreams and aspirations of an ever-increasing number of Indian households.”
Consumers can also use ZestMoney to pay for purchases of any amount of up to $3,000 (or Rs 2 lakh) at over 3,000 merchants, many offering interest-free financing options with no hidden fees.
Speaking on the investment, Philip Aldis, Managing Director at Goldman Sachs, said,
“India is one of the most exciting fintech markets in the world. We see this investment in one of the country’s leading consumer lending fintech companies as fostering much-needed access to affordable consumer credit to Indian households. We look forward to leveraging our global experience and network for the continued growth of ZestMoney.”
With more than six million registered customers in India, ZestMoney expects to cross an annual run rate of over $1 billion in disbursal run rate in less than 18 months.
In recent months, the platform has also partnered with online commerce brands including Flipkart, MakeMyTrip, and Paytm as a payment option at checkout.
(Edited by Megha Reddy)