Indian fintech startup ZestMoney raises $ 50 million in a Series C round from a prominent global buy-now-pay-later provider Zip Co Ltd, with the latter having the privilege of a minor shareholding in the former’s company and a board seat as well.

Zip, which was founded in Australia in 2013, now operates in 12 markets on five continents, serving over 7.3 million users and 51,000 merchants. The funds will be used to grow the product portfolio, deepen the transaction network, strengthen the balance sheet, and establish new insurance and savings business lines.

As for ZestMoney, the fintech firm plans on developing its product suite, deepening its transaction network, increasing its balance sheet capabilities, and establishing new insurance and savings business lines.

ZestMoney, which was founded in 2015 by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, provides the means of paying for products over time for its customers.

Regarding BNPL products the fintech firm goes all out ranging from 30 to 24 months and ticket values ranging from Rs.50 to Rs.5 lakh. Meaning customers can transact at over 10,000 online sites and 75,000 physical businesses across the country using the digital omnichannel BNPL player. The most popular categories on the platform include smartphones, major appliances, fashion, travel, home decor, and ed-tech. Customers that choose the pay later option like electric motorcycles, ayurvedic items, and personal care.

What’s more is that, the fintech firm, to support BNPL transactions for consumers across the country, has partnered with 25 banks and NBFCs.There are 11 million people that have signed up for it at present. Over the next five years, ZestMoney believes that India will become the world's largest BNPL market.

While BNPL is becoming a favored means of payment globally, according to Larry Diamond, CEO of Zip Co, it also plays a critical role in boosting credit access in India.

"Zest Money is set to accelerate expansion as the market grows, thanks to solid ties with online and offline businesses and lending partners." We've been really impressed with the founders and leadership team, and we're excited to see where ZestMoney goes next”, adds Diamond.

The transition to pay later solutions is a global phenomena that reflects young digital consumers seeking financial products that are transparent, honest, and free of hidden fees”, says Lizzie Chapman, Co-founder and CEO, ZestMoney.

We're pleased to welcome Zip to the next stage of our mission to promote affordability in the lives of Indian customers. This is a deep validation of our position as market leader in the Buy Now Pay Later category in India”, expresses Chapman.