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More Funding from Investors Aids ZestMoney's Continuation of its Operations

CIO Insider Team | Wednesday, 9 August, 2023

The buy-now, pay-later platform ZestMoney said that it has received more funding from its investors to assist it continue operating.

The company claimed to have received funding from Quona Capital, Omidyar Network India, Flourish Ventures, Zip, and Scarlet Capital, however it did not specify how much.

Two months after the fintech company earned a new lease on life from its existing backers and underwent a leadership shake-up following the collapse of its purchase deal with PhonePe due to due diligence issues, the undisclosed financing has been announced.

“While Zest has experienced some challenges following the stalled PhonePe deal, the management team has rolled up its sleeves and worked hard to right-size the business to take advantage of the huge market opportunity presented by its significant merchant and customer client base,” said Ganesh Rengaswamy, Managing Partner, Quona.

ZestMoney is now focusing even harder on becoming a top checkout financing platform as part of its expansion strategy.

ZestMoney had been having financial difficulties after the transaction collapsed with the Walmart-backed payment company in March as it sought to sell off its NBFC license and find new customers for its enterprise.

Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, the company's co-founders, informed its 175 workers of their resignations on May 15 as the investors took over.

Even though the three still owned a sizeable portion of the business, a new leadership group with Abhishek Sharma as head of growth, Mandar Satpute as chief banking officer, and Mohit Chhajer as vice president of finance and financial operations (FinOps) was put in place. This was followed by an investment infusion from investors.

“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,” said Peter Gray, COO of Zip.

ZestMoney, which was founded in 2015, gives clients pay-later options at both online and physical retail locations. According to their claims, the platform has over 17 million registered users, 10,000 online partners, and 85,000 retail touchpoints around the nation. Platforms including Amazon, Flipkart, Myntra, MakeMyTrip, Nykaa, Samsung, Apple, Vivo, Croma, and Reliance Digital are interconnected with its EMI network.

ZestMoney is now focusing even harder on becoming a top checkout financing platform as part of its expansion strategy. The business claimed to be closely collaborating with the nation's leading lenders, including one of the biggest banks.

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