ZestMoney's closure is a significant loss to the Indian startup scene, as it was one of the few companies using alternative data to build credit profiles for consumers in a country with low credit card penetration. The firm was established in 2015 to provide digital access to credit and loans, using AI to help India's population create credit-worthy profiles. Despite efforts to chart a new course, the company was unable to secure a deal with investors and FinTech giants.
Key takeaways:
- Indian buy now, pay later startup ZestMoney is reportedly shutting down after failing to find a buyer, despite previous high-profile investors including Goldman Sachs and PayU.
- The company, once valued at $445 million, will cease operations by the end of December.
- ZestMoney's closure is significant for the Indian startup scene as it was one of the few firms using alternative data points to build credit profiles for consumers in a country with low credit card penetration.
- In September 2021, Australian BNPL startup Zip purchased a $50 million minority stake in ZestMoney as part of a Series C funding round.