ZestMoney is a digital lending company that allows individuals to pay for things using digital EMIs without a credit card or a credit score. ZestMoney was founded in 2015 and is situated in Bangalore. Lizzie Chapman, Priya Sharma, and Ashish Anantharaman founded the company. ZestMoney is a platform that aims to enhance the lives of more than 300 million families in the country that lack access to credit cards or other forms of formal financing due to a lack of credit history. Zest Money
Website : https://www.zestmoney.in/
Table of Contents
Zest Money :
Latest News
ZestMoney, a Bangalore-based buy-now, pay-later platform, announced recently that it has secured $50 million in a fresh funding round led by Australia’s Zip, as the Indian start-up tries to capitalize on a trend that has shown early indications of popularity in numerous worldwide markets.
The fresh fundraising round hasn’t concluded yet, according to ZestMoney, because current investors will be involved. Goldman Sachs, Quona Capital, PayU, and Xiaomi are among the early supporters of the business, which has raised over $110 million to far.
About
ZestMoney is a digital lending company that allows individuals to pay for things using digital EMIs without a credit card or a credit score. ZestMoney was founded in 2016 and is situated in Bangalore. Lizzie Chapman, Priya Sharma, and Ashish Anantharaman founded the company.
By connecting clients with different loan partners and managing their credit for them, ZestMoney’s innovative platform leverages mobile technology, digital banking, and artificial intelligence to make life more affordable for millions of Indian consumers.
The World Economic Forum named ZestMoney a 2020 Technology Pioneer for their breakthrough technology and commitment to making inexpensive digital finance accessible.
Zest Money – Founder and Team:
Lizzie Chapman, Priya Sharma, and Ashish Anantharaman created ZestMoney in 2015, which is India’s largest and fastest-growing consumer lending fintech start-up.
Lizzie Chapman:- She is ZestMoney’s co-founder and CEO. She spent 5 years as an Investment Manager at Goldman Sachs in London before co-founding ZestMoney.The University of Edinburgh awarded her a BSc (Hons.) in Medical Microbiology. Lizzie worked for Goldman Sachs in London and the Wellcome Trust before co-founding ZestMoney.
She relocated from the United Kingdom to India in 2011 to lead Wonga’s Indian operations. Lizzie is also a founder member and member of the Executive Committee of the Digital Lending Association of India.
Priya Sharma: – Priya Sharma is a businesswoman who presently serves as the company’s COO and CFO. She previously worked for Deloitte and Sapient Corporation as a management and technology consultant, and at Wonga, she was in charge of looking at overseas markets from a strategic standpoint. She’s also worked at Bank of America Merrill Lynch and Bank of America Merrill Lynch, among other places.
Ashish Anantharaman: – For a little over two decades, Ashish Anantharaman has worked in technology in a number of organizations and disciplines. The world of finance has always appealed to Ashish since it is the most technologically challenging business. His main skill is forming teams that bring order, innovation, and passion to the chaotic world of technology.
Ashish went home after spending a substantial amount of time abroad to explore the incredible options available in India. For the past four years, he and his two co-founders have been on a rollercoaster ride with ZestMoney.
History:
In August 2015, Lizzie Chapman, Priya Sharma, and Ashish Anantharaman began researching the Indian financial services and lending market. ‘They were in a chicken-and-egg position at the time because you need a loan to get a score, and you need a score to get a loan.’ That’s when they realised they could tap into a huge market of people who previously couldn’t acquire a loan due to their credit history.
The trio presented a frictionless, fully digital, and automated solution to obtaining a small-ticket consumer loan, in which consumers would not be required to have a credit score, visit the financial institution’s facilities, or submit any documentation. They started constructing the platform and gaining merchant partnerships in September 2015.
They named the product ZestMoney, a combination of one of the program’s characteristics, quick approvals, and the nature of the business they were in, money lending.
Overcart was ZestMoney’s initial merchant partner when it launched in January 2016.
Name & Logo:
The word ‘Zest’ in ‘ZestMoney’ means for positive feelings such as enthusiasm, ardour, and passion, and the word ‘Zest’ in ‘ZestMoney’ speaks for ZestMoney’s quick loan of money, which makes borrowing money a happy rather than a stressful transaction. ‘EMI for everyone’ is the company’s tagline.
Revenue:
ZestMoney receives compensation from merchants, lenders, and borrowers. The company claims to receive over 500,000 applications every month and expects that number to continue to rise. In 2019, the company received an NPS of 75, which was higher than Amazon and Uber.
ZestMoney was just named second among the 50 fastest growing technology enterprises in India by Deloitte Technology in March 2021. According to the rankings, which were based on percentage revenue growth over three years, ZestMoney grew 2,706 percent in these three years.
Operational revenues climbed by 2.7X from Rs 26.7 crore in FY19 to Rs 72.4 crore in FY20, according to ZestMoney’s regulatory filings. ZestMoney has yet to file its annual financial statements.
ZestMoney’s yearly costs increased by 108.5 percent to Rs 256.5 crore in FY20, up from Rs 123 crore in FY19. To earn a single rupee of operational income, the corporation had to spend roughly Rs 3.54 per unit.
The company’s EBITDA margins, which were -342.2 percent in FY19, have steadily improved to -230.16 percent in FY20. However, yearly losses have almost quadrupled to Rs 181 crore in FY20, from Rs 95.4 crore in FY19.
Funding & Investor:
Throughout ten investment rounds, ZestMoney has raised a total of $118.4 million. Their latest funding was raised on Sep 22, 2021, from a Series C round, which was their most recent round of fundraising. ZestMoney is backed by a group of 16 investors. The most recent investors are Zip and Primrose Hills Ventures.
PhotographAI was bought by ZestMoney on August 1, 2018., including Xiaomi, PayU, Ribbit Capital, Naspers Fintech, and Omidyar Networks among its backers. The firm stated in January 2019 that it has received an undisclosed investment from venture debt fund Alteria Capital.
| Announcement Date | Transaction Name | No. of Investor | Money Raised | Lead Investor |
| Sep 22, 2021 | Series C – ZestMoney | 1 | $50M | Zip |
| Mar 13, 2020 | Venture Round – ZestMoney | 1 | $11.24M | Primrose Hills Ventures |
| Dec 19, 2019 | Series B – ZestMoney | 5 | $15M | Goldman Sachs |
| Apr 23, 2019 | Series B – ZestMoney | 1 | — | — |
| Apr 22, 2019 | Series B – ZestMoney | 6 | $20M | Quona Capital |
| Jan 18, 2019 | Debt Financing – ZestMoney | 1 | — | Alteria Capital |
| Aug 27, 2018 | Series A – ZestMoney | 5 | $13.4M | Xiaomi |
| Dec 7, 2016 | Series A – ZestMoney | 1 | — | — |
| Dec 7, 2016 | Series A – ZestMoney | 2 | $6.5M | PayU |
| Sep 1, 2015 | Seed Round – ZestMoney | 3 | $2M | — |
Revenue Model:
For items of significant value, ecommerce sites may require consumers to pay the whole amount up front. While those with credit cards may easily order these items, those without them will have a hard time getting them, especially in the country’s Tier 2 and Tier 3 cities. This is its key selling point.
Customers may now receive loans for the things they want with relative ease. Customers received clearance as quickly as possible, rather than waiting weeks for bank permission, thanks to Priya Sharma, co-founder, and her team. Customers say they may gain approval in as little as two hours, while credit card inquiries can take up to two weeks..
ZestMoney has over six million registered users in just four years. This figure has also brought in a lot of money for the organization, with investments coming in from all across the world, but more on that later.
Other Services Offered by Zest Money:
ZestMoney makes money by collecting interest on the money it gives out, even though they won’t state it. It’s a trade secret how much commission ZestMoney takes. As a result, the valuation of ZestMoney is likewise a speculative guess, however, some estimates suggest it may be over 84 million USD. However, Priya Sharma is the only one who can verify these figures.
Competitors :
Zest Money is up against so many the competitors in the same business. Here are a few of Zest Money’s main competitors:
- Finzy
- LazyPay
- Snapmint
- KredXIndia
- Early Salary
- Bullet
Future Plans:
In the future, the firm intends to grow its product development and collaborations at a faster pace. While certain ZestMoney Merchant Partners, such as Xiaomi, Titan, and Croma, accept ZestMoney EMI at their offline stores, the firm is working with more merchants to allow users to pay with ZestMoney EMI in more locations.
Zest Money – FAQs:
What exactly is ZestMoney?
ZestMoney is a Fintech firm located in Bangalore that enables people with poor credit histories to borrow money.
When was ZestMoney founded?
ZestMoney was founded in 2015
Who is ZestMoney’s Founder?
Lizzie Chapman, Priya Sharma, and Ashish Anantharaman are founders of ZestMoney.
How much funding does ZestMoney have?
ZestMoney has historically raised $121.8M in funding
Where is ZestMoney’s headquarters?
ZestMoney’s headquarters is in Bengaluru Karnataka, IN
How many employees does ZestMoney have?
ZestMoney has 500 employees
Who are ZestMoney’s partners?
Amazon, Flipkart, Myntra, SleepyCat, Xiaomi, NestAway, UpGrad, and many more have collaborated with ZestMoney.
Who are ZestMoney’s loan partners?
DMI Finance, Fox Capital, PACE Finance, Northern Arc, SMC Finance, Nahar Credits, InCred, Muthoot Finance, CSB Bank, Ghalla Bhansali, IIFL, and Hedge Finance are among Zestmoney’s lending partners.
What sector does ZestMoney operate in?
ZestMoney is in Retail & Business Banking
Who are ZestMoney’s competitors?
ZestMoney’s top competitors are Lazypay, EarlySalary, Bullet
