SUMMARY
ZestMoney's existing investors, including Quona Capital, Omidyar Network India, Flourish Ventures, Zip, and Scarlet Capital, have reportedly pumped in funds in the startup
The new funding will support the business as it drives towards profitability, ZestMoney said
The development comes months after PhonePe pulled out of the deal to acquire ZestMoney, following which the startup’s founders stepped down
In a relief for zestmoney
, its existing investors, including Quona Capital, Omidyar Network India, Flourish Ventures, Zip, and Scarlet Capital, have reportedly pumped in funds in the troubled fintech startup.
“The new funding will support the business as it drives towards profitability, and the company’s investors, made up of leading international and Indian fintech investors, are excited about its next chapter,” ZestMoney was quoted as saying in a statement by Moneycontrol.
The fintech startup also said the fresh capital infusion gives it enough room to get profitable soon.
“Anything more is welcome to further drive our growth moving forward. The current round raised in such a funding environment for the fintech sector globally is a testament to both the Zest model and the market opportunity,” the statement added.
The development comes months after PhonePe pulled out of the deal to acquire ZestMoney, following which the startup’s founders stepped down.
Founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015, Bengaluru-based ZestMoney offers BNPL services. It allows its users to pay their shopping bills in three instalments at 0% interest rate. It competes against the likes of Simpl, LazyPay, and ePayLater in the BNPL space in the country.
Last year, ZestMoney’s $300 Mn acquisition deal with PhonePe fell apart. Following this, cofounders Chapman, Sharma and Anantharaman resigned from the startup and ZestMoney set up a new leadership team to steer the ship.
Earlier, Inc42 highlighted the troubles of ZestMoney.
ZestMoney’s net loss widened 3X year-on-year (YoY) to INR 398.8 Cr in the financial year ending March 31, 2022. Revenue from operations rose 68.6% to INR 138.4 Cr from INR 82 Cr in the previous fiscal year.
Following the upheaval at the startup, Netherlands-based investment firm Prosus NV wrote-off its investment in ZestMoney.
