ZestMoney, the Goldman Sachs-backed Indian fintech startup as soon as valued at $450 million, has offered itself to monetary companies agency DMI Group, the 2 stated late Wednesday, in a fireplace sale that caps 12 tumultuous months for the once-hot new age lender.
The 2 companies didn’t disclose the phrases of the offers, however an individual conversant in the scenario stated the acquisition is essentially a approach for DMI to poach and retain expertise and that each investor in ZestMoney misplaced cash.
In an announcement, DMI Group stated the deal grants it with the unique proper to the usage of all Zest manufacturers and make the NBFC arm DMI Finance a most popular lender on the Zest platform. DMI additionally plans to supply its prospects ZestMoney’s checkout financing platform. “DMI can even deliver its buyer base, balance-sheet power and vital risk-management expertise to drive progress throughout Zest’s on-line and offline service provider community,” DMI stated in an announcement.
Information concerning the acquisition follows ZestMoney — a purchase now, pay later platform whose skill to underwrite small ticket loans to first-time web prospects attracted many high-profile traders — saying final month that it will be shutting down the startup.
ZestMoney founders give up the startup in Could final yr after acquisition talks with fintech large PhonePe didn’t materialize. The founding workforce handed over the agency to a few new leaders, who raised a couple of million {dollars} from present traders and tried to discover a new path for the corporate.
The Bengaluru-headquartered startup — which recognized PayU, Quona, Zip, Omidyar Community and Ribbit Capital amongst its backers — employed about 150 individuals and had raised over $130 million in its eight-year journey.
“ZestMoney has been a pioneering supplier of checkout finance in India. We’re at all times in search of best-in-class options to boost each the engagement with – and the expertise of – our buyer and service provider base,” stated Shivashish Chatterjee, co-founder and joint MD of DMI, in an announcement. “We’ve got been partnered with ZestMoney for 8+ years in numerous capacities. We firmly consider that this acquisition will likely be an essential step in our journey to offer digital monetary inclusion at scale throughout India.”
