Consumer lending platform, ZestMoney, said that it has raised $20 million as part of its Series B financing led by global fintech investor Quona Capital. The round also saw participation of Australian fintech investor Reinventure, and existing investors Ribbit Capital, Omidyar Network, and PayU. The new funds will support the company’s expansion plans for 2019, and address the growing demand of EMI financing in India.
The company will deploy the investment primarily in technology and data science for expanding acceptance of ZestMoney as a digital payment instrument (online and in-store), as well as enhancing product capabilities, and acceptability. The firm will further strengthen its collaborations with retailers, banks, and NBFCs to develop a deeper and holistic ecosystem. Further, including the new round, ZestMoney has raised a total of $42 million till date.
Founded by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman in 2015, ZestMoney is a digital lending platform, catering to consumer’s lending needs.
Commenting on the announcement, Lizzie Chapman, Co-founder & CEO, ZestMoney, said:
“Digital affordability solutions are witnessing unprecedented growth in India, and this funding will help us in making EMI financing a reality for a billion Indians by accelerating our efforts to make ZestMoney ubiquitous. Quona Capital and Reinventure both have a long track record of funding successful fintech companies at growth stage, and this investment is a great validation of not only our mission, but also our achievements.”
Quona Capital invests in early and growth-stage financial technology companies in emerging markets. The firm has so far invested in Neogrowth, Fisdom, CreditMantri, and SME Corner, among others in India.
Ganesh Rengaswamy, Co-founder and Managing Partner, Quona Capital, said:
“ZestMoney and Quona’s partnership is very symbiotic, given the shared values of addressing big challenges in emerging markets fintech, market leadership through responsible high growth, and delivering financial accessibility to vastly underserved consumers. ZestMoney is uniquely positioned in one of the biggest growth markets in the world, and we are delighted to play a part in shaping the company’s success.”
In August last year, the digital lender had raised $13.4 million in a new round of Series A2 funding, led by smartphone manufacturer Xiaomi. Previously, PayU led the company's Series A investment of $6.5 million in 2016.
Speaking on the association, Simon Cant, Reinventure, said,
“The founding team at ZestMoney has an unparalleled vision, and that made the company even more attractive for us. Powered by technology, I have no doubt that ZestMoney will lead India’s fintech future, and we are thrilled to become a part of it.”
In January this year, ZestMoney had also announced that it had raised an undisclosed investment from venture debt fund Alteria Capital. Further, the company said that it will be aggressively doubling down on the skill development space, with plans to grant over $100 million in skill loans to executives in 2019.