The DMI Group has revealed its strategic acquisition of the ZestMoney platform in a fire sale that concludes a turbulent year for the Goldman Sachs-backed firm.
DMI Finance, will serve as the preferred lender on the Zest platform, gaining exclusive rights to utilise all Zest brands as part of the move, as reported by Finextra.
The Pan-Indian financial services platform is aiming to leverage its expansive customer base, robust balance-sheet strength, and considerable risk-management expertise to fuel growth across Zest’s extensive online and offline merchant network.
Zest boasts a decorated and deep merchant network exceeding 80,000 across India, including major names like Amazon, Flipkart, Myntra. As part of the acquisition, DMI is looking to utilise this extensive reach to enhance the Indian financial market.
The news of a buyer comes shortly after reports emerged alleging that the BNPL startup was set to shut down after failing to find a buyer.
The firm previously held acquisition talks with FinTech giants PhonePe, before they ultimately fell through.
However, DMI has now snapped up the Bengaluru-based firm, continuing the almost decade long relationship between the Indian companies.
Shivashish Chatterjee, co-founder and Joint Managing Director of DMI said, “ZestMoney has been a pioneering provider of checkout finance in India. We are always looking for best-in-class solutions to enhance both the engagement with – and the experience of – our customer and merchant base. We have been partnered with ZestMoney for 8+ years in various capacities. We firmly believe that this acquisition will be an important step in our journey to provide digital financial inclusion at scale across India.”
Mandar Satpute, Chief Operating Officer of Zest said, “DMI has been at the forefront of digital lending in India. They bring strong capital support and deep expertise. DMI has been an early supporter of ZestMoney and we are very excited to take our partnership to a whole new level.”
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