Home » SME » Zestmoney raises funds from Goldman Sachs

Zestmoney raises funds from Goldman Sachs

Millions of Indians have been helped with some money which has been poured by one of America’s largest banks. These Indians will get this money without a credit secure loans and they will be able to make purchases online for the first time in their lives.

ZestMoney, based in Bengaluru reportedly announced that it has managed to raise $15 million from Goldman Sachs and some existing investors Quono Capital, Naspers Fintech and Omidyar Network. As stated by the Chief Executive and co-founder of ZestMoney, Lizzie Chapman the new investment is a part of an extended round of Series B, the first portion of which was announced in April, this year.

The extended Series B round according to Chapman has led to ZestMoney’s total raise to $63 million.

India has very low penetration of credit cards in India. Only about three in every 100 people in India have a credit card. This has signalled to the fact that very limited people in the nation have a traditional credit score on which the banks heavily rely in order to establish one’s credit worthiness before the issuance of any loan.

Notably small loans don’t generate more of lucrative returns for banks providing them less incentive to write such cheques. A growing number of Indian start-ups in recent years has stepped into address this void.

ZestMoney analyses other data point and leverages AI to help these people build a profile and become credit worthy. The start-up has been in association with more than 3,000 merchants-up from nearly 800 in the 2nd half of April-including Amazon, Flipkart and Paytm to provide financing options to consumers at point-of-sale.

It has accumulated over 6 million users who are eligible of accessing credit of $140 t0 $3000. Along with this, to make this deal even better an interest-free option for the customers have been offered by many of these merchants provided they pay back by a specified amount of time.

This start-up is known for its association with nearly all the online payments processor in India. The list includes Billdesk, Razorpay, CCAvenue, Cashfree and PayU. Now is the time it has also made a move in the brick and mortar market by signing deals with Chinese smartphone maker Xiaomi and Pine Labs which has deployed more than 300,000 point-of-sale machines across the country.

An unspecified amount of debt has also been raised by ZestMoney which it has been using to finance credit to customers. Recently it has also entered a strategic partnership with a Japanese financial services company, Credit Saison affiliated to Mizuho Financial Group in order to deploy $100 million for expanding digital lending in the nation.


An MD at Goldman Sachs, PhilipAldis reportedly aid that the firm’s investment in ZestMoney would make more households in India able enough to access credit.

A handful of checks to the start-ups of India have been written by Goldman Sachs including home rental platform NestAway, online Furniture store PepperFry, logistic start-up Blackbuck and news aggregator DailyHunt.

It is also responsible for investing in several financial start-ups including NuBank, a Brazilian firm that works around offering digital credit cards to smartphone users. The New York-headquartered firm is also the banking partner for Apple Card.

Further Zestmoney aspires to disburse credit of worth $1 billion in about 18 months and reach nearly 300 million users one day. Of course, digital lending in India is likely to be a $1 trillion opportunity in the upcoming five years according to Boston Consulting Group.

Check Also

Airtel ties up with Google Cloud

Airtel ties up with Google Cloud

US based tech giant Google reportedly announced its association with telecom major Bharti Airtel on …

Do NOT follow this link or you will be banned from the site!