Phonepe acquires ZestMoney and will continue it as a separate business – Report

According to a livemint report, buy-now-pay-later (BNPL) fintech startup ZestMoney has been acquired by India’s top fintech platform, PhonePe. But as of yet, the deal’s financial specifics are unknown.

“The purchase is complete. According to a source familiar with the situation, ZestMoney will continue to operate independently under the Zest brand.

The report claims that ZestMoney previously engaged in purchase discussions with Pine Labs and BharatPe, but those negotiations were unsuccessful.

Lizzie Chapman, Priya Sharma, and Ashish Anantharaman created ZestMoney, an Indian fintech startup that specializes in consumer loans, in 2015. Investors who support it include Alteria Capital, Australia’s Zip, Goldman Sachs, Quona Capital, and Xiaomi. In September 2021, the company had raised $50 million.

In the areas of mutual funds, insurance, digital gold, and silver, PhonePe is already present. However, it has not yet made financing available through its site. In fact, Paytm and BharatPe, its competitors, have been involved in the lending industry through both merchant and consumer financing.

In the past year, PhonePe has purchased GigIndia, WealthDesk, OpenQ, and completed the long-delayed acquisition of IndusOS.

ZestMoney’s loss increased by 216 percent to Rs 398 crore in FY22 from Rs 125.8 crore the previous fiscal year, according to papers acquired through Tofler. From Rs 89.3 crore in FY21 to Rs 145 crore in FY22, revenues increased by 62 percent.

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