Bengaluru: Bengaluru-based fintech Company ZestMoney has raised $20 million in its Series B round led by Quona Capital, a venture capital firm focused on financial technology prodcuts, according to a company statement on Tuesday.
Australian fintech investor, Reinventure, and existing investors Ribbit Capital, Omidyar Network and PayU also participated in the round.
The new funding will support the company’s expansion plans for 2019 which provides EMI-based financing for e-commerce purchases, and for other online purchases.
Founded in 2015 by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, ZestMoney previously raised $6.5 million seed funding in 2017.
ZestMoney employs its own credit scoring algorithms to do risk profiling of e-commerce consumers who opt for equated monthly installment (EMI) payment option and works with financial institutions to give loans to such consumers.
The start-up usually targets users who do not have access to credit cards or any other formal financing options because of insufficient credit history.
“Digital affordability solutions are witnessing unprecedented growth in India, and this funding will help us in making EMI financing a reality for a billion Indians by accelerating our efforts to make ZestMoney ubiquitous," said Lizzie Chapman, Co-founder & CEO at ZestMoney.
With the fresh funding, the firm will also further strengthen its collaborations with retailers, banks & non-banking financial institutions.
Quona Capital invests in early and growth-stage financial technology companies in emerging markets. The firm has invested in Neogrowth, Fisdom, CreditMantri and SME Corner, among others in India. Quona has a strategic partnership with Accion.
“ZestMoney and Quona’s partnership is very symbiotic given the shared values of addressing big challenges in emerging markets...ZestMoney is uniquely positioned in one of the biggest growth markets in the world, and we are delighted to play a part in shaping the company’s success.", said Ganesh Rengaswamy, co-founder at Quona Capital in a statement.