ZestMoney, a fintech startup specializing in short-term digital credit, has secured $10 million (Rs 74 crore) in fresh funding. The funding comes from its existing investors, which include Sequoia Capital India, Ribbit Capital, and Beenext. This round of funding is crucial for ZestMoney as it aims to recover from previous challenges.
In 2021, the company had to close its BNPL (buy now, pay later) business due to regulatory issues, leading to the layoff of approximately 100 employees. However, ZestMoney has experienced a resurgence in recent months, with a remarkable 120% year-on-year growth in revenue during the first quarter of 2022.
The newly acquired funds will facilitate ZestMoney’s expansion plans, both in terms of reach and product offerings. The company intends to introduce new lending and insurance products while also expanding its offline presence through additional retail touchpoints.
As one of the prominent players in India’s digital credit sector, ZestMoney boasts a customer base exceeding 10 million. It collaborates with banks and NBFCs to provide credit services to customers.
This latest round of funding not only injects capital into ZestMoney but also reflects the confidence in the company’s prospects. With the rising demand for digital credit in India, ZestMoney is well-positioned to capitalize on this market opportunity.
