ZestMoney raises $50 million from Australian BNPL fintech Zip Co

Buy Now Pay Later (BNPL) startup ZestMoney said on September 22 that it had raised $50 million from Australian BNPL fintech Zip Co. This is a part of a larger Series C fundraise which will see participation from existing investors, the company added.

This also marks Zip's entry into the Indian market. Founded in Australia in 2013, Zip currently has a presence in 12 markets across five continents and is listed on the Australian Securities Exchange (ASX).

Through the investment, Zip will acquire a minority shareholding in the company and a board seat. A filing by Zip on the ASX website says that the company has also negotiated terms to increase its shareholding over time.

ZestMoney said that it had plans to deploy the funds to expand the product suite, deepen the transaction network, strengthen its balance sheet capacity and launch new business lines in insurance and savings.

This fundraise comes at a time when the Indian market is increasingly moving towards higher adoption of various credit instruments including BNPL. ZestMoney also acquired a corporate agent insurance license from the Insurance Regulatory and Development Authority of India (IRDAI) in August.