Australian buy now, pay later (BNPL) company Zip has invested $50m into Indian BNPL firm ZestMoney to expand its global grip on the payment market.
The investment comes amid forecasts that the huge nation will emerge to be the largest market globally for credit-on-tap over the next five years.
Launched in 2015, ZestMoney is a fast-growing BNPL platform in India that has over 11 million registered users and over 10,000 merchants as well as a point of presence in more than 75,000 physical stores.
The company claims its technology makes it accessible for millions to ‘upgrade, enhance and rise’ while keeping it affordable. Users can repay through the service in either 30 days, 3 months or 4 months.
As part of the deal, Zip has negotiated terms to increase its shareholding, with a member of the Zip executive team over time taking a seat on the ZestMoney board. Zip’s investment is part of a wider $100m Series C funding raise for ZestMoney.
ZestMoney CEO and co-founder Lizzie Chapman said, “The shift towards Pay Later solutions is a global phenomenon and represents young digital consumers looking for transparency, honesty and no hidden charges in financial products.
“We believe India will leapfrog traditional products like credit cards, along with many other emerging markets, going straight to digital payment solutions. We strongly believe India will emerge as the largest BNPL market in the world over the next 5 years.”
This recent investment by Zip follows a strong year of acquisitions for the company. In September, Zip purchased South African BNPL Payflex, a firm that allows customers to spread their payments over six weeks at no additional cost.
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