Aussie BNPL firm Zip targets Indian expansion with ZestMoney investment
Australian buy now, pay later (BNPL) company Zip will acquire a minority stake in Indian firm ZestMoney through a $50 million investment as it looks to tap into new markets as part of its global expansion strategy.
Zip has also negotiated terms to increase it’s shareholding over time, with a board seat included as part of the investment. The deal is expected to complete by the end of September.
AI-driven ZestMoney is India’s largest BNPL provider with 11 million registered users, over 10,000 online merchants on its platform and a presence in over 75,000 bricks-and-mortar stores.
By 2026, India is forecast to have a $300 billion BNPL market driven by younger consumers, changing spending trends, an emerging middle class and an increase in online shopping.
Zip co-founder and CEO Larry Diamond says BNPL plays a crucial role in India in providing access to credit. “With more people using digital payments and online shopping, ZestMoney can positively impact hundreds of millions of lives in the coming years.”
ZestMoney co-founder and CEO Lizzie Chapman adds: “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.”