DMI Finance Rescues ZestMoney in Acquisition, Aims for Digital Financial Inclusion
- DMI Group acquires ZestMoney in a distressed sale, gaining exclusive rights to its brands.
- DMI Finance becomes the preferred lender on ZestMoney's BNPL platform, planning to incorporate its checkout financing into its product suite.
- DMI aims to leverage its financial strength and risk-management expertise for growth across ZestMoney's merchant network, focusing on digital financial inclusion in India.
Delhi NCR-based DMI Group has recently acquired troubled fintech startup ZestMoney in what seems to be a distressed sale.
Under the agreement, the DMI Group will gain exclusive rights to use all Zest brands, and DMI Finance, the company's NBFC arm, will become the preferred lender on the BNPL platform.
According to DMI, this acquisition will allow them to incorporate ZestMoney's checkout financing platform into their product suite, expanding their reach to both existing and potential customers.
Furthermore, DMI plans to utilize its customer base, strong financial position, and extensive risk-management expertise to drive growth across ZestMoney's online and offline merchant network.
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DMI co-founder and joint managing director, Shivashish Chatterjee, expressed his belief that this acquisition will play a crucial role in their mission to provide digital financial inclusion on a large scale throughout India.
Despite being backed by prominent investors such as Prosus, Quona, Zip, Omidyar Network, and Ribbit Capital, ZestMoney experienced a 3% increase in losses and a 76% increase in operating revenue in the financial year 2022-23 (FY23), with losses amounting to INR 412.4 crore and operating revenue reaching INR 243.7 crore.
Edited by Shruti Thapa
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