ZestMoney raises fresh capital from existing investors

Beleaguered pay-later startup ZestMoney on Tuesday mentioned that it has secured contemporary capital from present traders Quona Capital, Omidyar Network India, Flourish Ventures, Zip and Scarlet Capital because it seems to be to proceed operations.

The firm didn’t disclose the quantity raised.

ET had reported on July 4 that the corporate had raised $5 – $7 million from its present backers.

The contemporary funding comes after talks for it to be acquired by funds main PhonePe fell by means of over issues throughout the due diligence of the pay-later platform. ET had first reported the breakdown in deal talks on March 30.

The failed talks left ZestMoney struggling for runway because it thought of promoting its non-banking finance firm (NBFC) and was a pivot from offering loans to customers right into a software program play providing its platform as a white-label answer for different digital lenders.

With the brand new funding, the corporate will look to drive its business in the direction of profitability, the corporate mentioned.

“This capital—combined with the unwavering commitment of our more than 150-strong team—enables us to successfully serve our consumers, merchants and lender partners, while continuing to keep non-payment rates at under 2.5% in the fastest-growing EMI market globally,” mentioned Abhishek Sharma, the newly appointed chief government of ZestMoney.

Earlier this yr, ZestMoney founders Lizzie Chapman, Priya Sharma and Ashish Ananthataman stepped down and appointed a brand new administration to steer the corporate ahead.

ZestMoney’s present administration workforce consists of firm veterans Sharma, chief working officer Mandar Satpute, and chief monetary officer Mohit Chhajer.

As disaster struck this yr, the corporate laid off 100 workers. PhonePe struck a deal to get a duplicate of the expertise IP (mental property) of ZestMoney’s mortgage servicing platform and round 130 workers from the pay later startup to speed up its personal lending play.

Founded in 2015, ZestMoney supplies pay-later choices to prospects at on-line and offline service provider shops.

“When talks stalled with PhonePe over a potential acquisition, the company’s new leadership adapted and reset the business. Today, with a streamlined platform and a laser focus on profitable growth, it’s an even stronger investment case for us as investors,” mentioned Peter Gray, COO of Australian pay later large Zip, which first invested within the firm in September 2021.

Currently, ZestMoney claims to have greater than 17 million Indian customers registered on the platform. The firm says its service provider community consists of greater than 10,000 on-line companions and 85,000 retail touchpoints throughout the nation.

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