Bengaluru: Mobile handset maker Xiaomi has tied up with consumer credit platform Zestmoney to provide an equated monthly instalment (EMI) option for purchases on Xiaomi’s e-commerce portal Mi Store.
Such purchases will be allowed without the need for a credit card or a credit score. Mi Store customers will have to go through an online process to get an approved credit limit before they can make the EMI purchases. Customers will be able to use this credit limit to pay for their orders by using the ‘Cardless EMI’ option at the checkout page.
The Mi Store debuted in India in March 2015 and almost two years later in May 2017, it launched its own single-brand offline ‘Mi Home Store’ in India. The company also has tie ups with other offline stores.
“Our vision is to make high end technology available to everyone and our partnership with Zestmoney for cardless EMIs is a step forward in that direction. By addition of affordable EMI options without credit cards, we hope to provide a comprehensive purchasing experience for Mi fans," Raghu Reddy, head of online sales at Xiaomi India, said in a statement.
ZestMoney is an e-commerce portal that enables consumers to pay for their orders in monthly instalments, without the need for a credit card or credit score. The company uses machine learning algorithms coupled with a proprietary risk engine to assess the credit worthiness of a buyer.
Founded in 2015 by Priya Sharma, Lizzie Chapman and Ashish Anantharaman, ZestMoney is backed by investors like PayU, Ribbit Capital and Omidiyar Network, among others. It currently has tie ups with more than 50 e-commerce companies and claims to have extended credit limits of $50 million till date.
Chapman, chief executive officer of ZestMoney, said the company sees the most credit purchases in tier-2 and tier-3 cities where credit-card penetration is lower than in the metros. On a monthly basis, the company claims to receive application for credit worth $10 million.
“ZestMoney has been growing very rapidly over the last 12 months; demonetisation happened during this growth phase and we definitely think it provided some momentum. Indian e-commerce companies decided to add many more digital payment methods at that time and actively reduce their dependency on cash on delivery," Chapman added.