India-based financial services platform DMI Group has announced its acquisition of the Goldman Sachs-backed ‘buy now pay later’ (BNPL) platform ZestMoney.
This comes after the Bengaluru-based ZestMoney ceased operations following unsuccessful attempts to revive its business amid regulatory uncertainties. DMI, having raised over $1.5 billion from global investors and banks, did not disclose the financial terms of the deal.
The seven-year-old ZestMoney was last valued at nearly $450 million. At its peak, the startup boasted of a customer base of 17 million with loan disbursals of ₹400 crore per month.
According to the announcement, the acquisition marks a significant development in the Indian fintech landscape, especially considering ZestMoney’s recent operational challenges. DMI Finance, the NBFC arm of DMI Group, will now be a preferred lender on the ZestMoney platform, gaining exclusive rights to all ZestMoney brands.
Shivashish Chatterjee, co-founder and joint managing director of DMI, emphasized the strategic importance of this acquisition.
We have been partnered with ZestMoney for over 8 years in various capacities. This acquisition will be an important step in our journey to provide digital financial inclusion at scale across India.
DMI Group’s diverse operations in digital finance, housing finance, and asset management are expected to benefit from the integration of ZestMoney’s checkout financing platform. According to the announcement, this move aims to enhance DMI’s customer engagement and drive growth across ZestMoney’s merchant network.
ZestMoney, known for its automated digital customer onboarding and servicing system, has facilitated instant digital credit at the point of sale for customers. The platform boasts a network of over 80,000 merchants across India, including Amazon, Flipkart, and Reliance Digital.
The acquisition follows a turbulent period for ZestMoney, founded in 2015. After its founders resigned last year, the company struggled to raise fresh capital amid a funding winter.
The tightening of regulations on digital lending by the Reserve Bank of India further complicated matters, leading to a gradual decline in engagement with lenders and financial corporations.
With DMI’s acquisition of ZestMoney, the Group is positioned to strengthen its digital lending capabilities and further its goal of widespread financial inclusion in one of the world’s most dynamic financial markets.