ZestMoney, a Bengaluru-based fintech company, is known for offering digital credit options for people who don’t have credit scores. Founded in 2015 by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, ZestMoney has been making waves in the industry, securing funding worth $120 million in its Series C round. The company’s mission has been to enable affordable credit for a billion Indians.
History and Funding:
Since its inception, ZestMoney has been on a mission to address the lack of access to credit for low-income households. The company’s founders leveraged their experience in the fintech industry to create a business model that caters to the underserved segment of the market. The company secured its first funding of $6.5 million in its seed round in 2016, followed by a series A round of $13.4 million in 2017. ZestMoney raised $20 million in its series B round in 2018, and in 2021, the company secured $120 million in its series C round, making it one of the top-funded fintech startups in India.
Investors and Performance:
ZestMoney has attracted top investors like PayPal, Ribbit Capital, and Xiaomi. Over the years, the company has grown its user base and expanded its product offerings. ZestMoney’s credit options are available on over 8000 online and offline merchants, including Amazon, Flipkart, and MakeMyTrip. The company has achieved remarkable growth, clocking a 10X increase in revenue over the last two years.
The Reason for Layoffs:
Despite its impressive growth trajectory, ZestMoney recently announced that it is considering layoffs as its deal with PhonePe fell through. In its latest round of layoffs, the company has let go of 100 employees, which represents 20% of its workforce, in a bid to optimize its operations. The company blamed the layoffs on PhonePe’s decision to terminate its partnership, which would have helped ZestMoney expand its user base
Statements from Company Stakeholders:
In a statement issued by ZestMoney, the company’s spokesperson stated, “We have taken a difficult decision to optimize our operations to attain profitability. This decision was made after PhonePe terminated its partnership with us. Our business model is based on partnerships, and we are working towards bringing on board new partners to expand our reach and bring affordable credit to a billion Indians.”
In conclusion, ZestMoney has been at the forefront of providing affordable credit options to a segment of the market that has been underserved. Despite facing challenges, the company has achieved remarkable growth, raised significant funding, and attracted top investors. The recent layoffs were a tough decision, but the company remains optimistic about the future and is working towards new partnerships to expand its reach. With its focus on providing affordable credit to the masses, ZestMoney is poised for further growth in the years to come.