This round was led by Goldman Sachs
ZestMoney, the firm originated from Bangalore reported that it got funded from one of the largest banks of America, Goldman Sachs. It raised $15 million in Series B round of funding, which saw existing investors such as Naspers Fintech, Quona Capital, and Omidyar Network also participating. Lizzie Chapman, Co-founder and Chief Executive of ZestMoney told the press that new funding just an extension of Series B funding, as it was announced in April previously this year.
She also told that the extended round has assimilated $63 million for ZestMoney to date. People in India mostly do not prefer credit cards, only three out of 100 people go for a credit card. The number of people having a reliable credit score is very less, which of course means banks have to find out customers’ creditworthiness before the lending loan.
Enabling more households in India to access credit
That’s why most of the banks are reluctant to issue small loans as they do not fetch much return. But in recent times some Indian startups have got into financial services and availing small loans to the people who are in need. ZestMoney evaluates data points and with the use of AI helps the loan seekers to create a creditworthy profile. The company has in collaboration with 3,000 merchants across India, which include Amazon, Flipkart and Paytm. It enables the company to offer a financing option to customers while shopping online.
The company has gathered over 6 million users and they can get a credit of $140-$3,000. Some of the merchants offer an interest-free option to their customers which customers have to return on the agreed time. “The firm’s investment in ZestMoney would enable more households in India to access credit. WE look forward to leveraging our global experience and network for the continued growth of ZestMoney,” said Philip Aldis, MD at Goldman Sachs.