DMI Group, based in Delhi NCR, has successfully acquired ZestMoney, the beleaguered Buy Now Pay Later (BNPL) fintech startup. The acquisition follows recent internal announcements within ZestMoney, stating its imminent shutdown by the end of December 2023. DMI’s acquisition includes exclusive rights to utilize all Zest brands, and its non-banking financial company (NBFC) arm, DMI Finance, will emerge as the preferred lender on the BNPL platform.
As part of the deal, DMI aims to integrate ZestMoney’s checkout financing platform into its product suite, expanding engagement with existing and potential customers. Leveraging its customer base, robust balance sheet, and significant risk-management experience, DMI plans to drive growth across ZestMoney’s extensive online and offline merchant network.
DMI’s co-founder and joint managing director, Shivashish Chatterjee, expressed confidence in the acquisition, emphasizing the fruitful partnership with ZestMoney over the past 8+ years. He stated, “…this acquisition will be an important step in our journey to provide digital financial inclusion at scale across India.”
ZestMoney’s Chief Operating Officer (CEO), Mandar Satpute, welcomed DMI’s involvement, highlighting their capital support and deep expertise in the digital lending landscape. Satpute remarked, “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.”
DMI Group, the parent company of DMI Finance, was founded in 2008 by Chatterjee and Yuvraja C Singh. Focusing on pure-play digital lending, DMI Finance serves categories such as personal and MSME loans, utilizing digital channels for customer sourcing and services.
ZestMoney, established in 2015 by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, had faced significant challenges due to regulatory changes and a flawed business model. Despite raising over $125 million in debt and equity funding and being valued at $455 million in September 2021, ZestMoney underwent a massive restructuring. The subsequent leadership change failed to revive the company, leading to reports of impending shutdown and discussions of acquisition in a potential firesale.
The distressed sale to DMI Group marks a turning point for ZestMoney, and its integration into DMI’s financial ecosystem will be closely watched in the evolving landscape of the fintech sector.
