The latest acquisition of PhonePe is ZestMoney which is the largest and fastest-growing consumer fintech company.
Among the big data of fintech start-up PhonePe, news of a contract with Zest Money was recently reported. The amount of the acquisition has not yet been disclosed. ZestMoney is an India-based fintech company specializing in “buy now, pay later” services.
“The acquisition is done. ZestMoney will continue to operate as a separate entity with Zest brand,” one of the officials stated.
ZestMoney is preparing an internal town hall to publicize the outcome. Startup Buy Now, Pay Later has been looking for a buyer for at least six months as it struggles to increase capital. The statements recorded by the people indulged in the matter stated that ZestMoney was previously trying to contract with other Fintech companies like Pine Labs and BharatPe but the bargain didn’t go through.
It is in the process of approval and approval to list next year. PhonePE who had already obtained insurance brokerage, stock brokerage, and aggregator licenses, also applied for an NBFC license.
In 2019, ZestMoney acquired NBFC Nahar Credits, formerly owned by British credit firm Wonga Group, for £17 crore. ZestMoney’s co-founders Lizzy Chapman, Priya Sharma, and Ashish Anantaraman were previously involved in Wonga’s Indian operations.
Bangalore-based ZestMoney, which provides EMI financing at the online checkout, has started paying for large purchases from 20,000 rupees to 30,000 rupees.
“However, post-Covid the average ticket size came down to ₹13,000. The aggressive BNPL play has been backfiring globally. The problem with moving to a smaller BNPL segment is the volume goes up but the profitability takes a massive hit,” the individual added.
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