In an important move for the money-linked tech industry, it is said that DMI Finance and Aditya Birla Finance are talking about buying a fintech start-up from Bengaluru called ZestMoney. This sale could be profitable but dangerous at the same time. Future buyers want to get ZestMoney’s good tech system and have authority over the big debt book it has carefully made for its friends.
Started in 2015, ZestMoney has become an important part of the Indian money technology world. It provides a Buy Now and Pay Later service to its users. The startup’s unique plan lets people pay for their shopping in three easy parts, all with a fair zero percent interest rate. But even though ZestMoney first did well and many people used it, they now seem to have money problems. That’s why they made the choice by December end to stop working completely.
DMI Finance and Aditya Birla Finance are very interested in ZestMoney’s great loan book, which is worth about INR 400 Crores. The new business wisely used these funds to help out loans for its partner Non-Banking Financial Companies (NBFCs). This buy could possibly give the buying companies a ready group of customers and an existing collection of loans. This would help them stand out more in today’s changing tech world for money stuff.
ZestMoney mostly worked as a way to find money, acting between people who needed loans and its partners NBFCs. The company’s way of doing business was to give customers an easy and smooth money loan, especially when they shop on the internet. Recently, the group has faced some problems like three of its first founders – Lizzie Chapman, Priya Sharma, and Ashish Anantharaman- leaving in May. This shows there are troubles inside the team.
The talks about buying a company happen when the Indian fintech area is seeing more competition and smart moves among big players. DMI Finance and Aditya Birla Finance want to grow their online lending business, so they are interested in ZestMoney. The fintech startup has many customers and technology that these companies like.
With ZestMoney shutting down and having to let go of all 150 workers, the possibility that DMI Finance or Aditya Birla Finance might buy it could give some hope. The companies that buy ZestMoney might want to mix their technology and customers with what they already have. This could help make the old startup new again while also helping it grow in India’s busy tech industry area called the fintech ecosystem.
The details about who is buying what are being kept secret and still need permission from regulators. But this action shows how fast things change and come together in the fintech world. As old banks change to use new technology, big buys like this might lead to better ideas and customer-focused financial choices in the future.
