ZestMoney is expected to use the funds to expand its product suite, deepen its transaction network and launch new business lines, including insurance and savings
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Digital credit lending platform ZestMoney on Wednesday said it has raised $50 million as part of its ongoing Series C round from Australia-based buy now, pay later (BNPL) provider Zip Co. Ltd. The company is expected to raise up to $100 million as part of this ongoing Series C funding. As part of the fundraise, Zip will acquire a minority shareholding in the company and a board seat.
Founded in Australia in 2013, Zip has a presence in 12 markets across five continents, and serves more than 7.3 million customers across 51,000 merchants.
ZestMoney is expected to use the funds to expand its product suite, deepen its transaction network and launch new business lines, including insurance and savings.
With this fundraise, the company has raised more than $110 million in funding till date.
“It’s a bit early for us to look at international markets, especially through this fundraise. We are quite happy to have Zip invest in us, considering they have ramped up their presence and investments in emerging markets and are currently ‘market specialists’ for the BNPL category in these geographies," said Lizzie Chapman, chief executive officer and co-founder, ZestMoney, in an interaction with Mint.
Chapman also said that an investment from Zip could open strategic opportunities in the future, allowing ZestMoney to increase and deepen its merchant base with international brands.