Bengaluru – based digital lending startup, ZestMoney has raised $13.4min an extended Series A funding led by Xiaomi. The round also saw participation from existing investors PayU, Ribbit Capital and Omidyar Network.
With the current fundraising, the total amount that ZestMoney has raised about $22 million to date. The startup had last raised USD 6.5 million funding in February 2017. It picked up seed funding of $2 million in 2015.
The company intends to use the current funds to improve its technology and data science capabilities. Besides, it also plans to expand its product portfolio to travel and healthcare sectors.
Co-founded in 2015 by Lizzie Chapman, Priya Sharma and Ashish Anantharaman, ZestMoney provides a platform that enables instant account opening and real-time credit approval, combined with digital loan servicing and repayments technology.
Commenting on the fundraising, Lizzie Chapman, Co-Founder and Chief Executive of ZestMoney, said, “We are very excited to have Xiaomi as a new investor in the company given the success they have had in building digital credit products in China. They have built one of the most loved brands in India and have a passionately consumer-focused philosophy, which deeply resonates with our values as a company.”
ZestMoney has been closely working with Xiaomi to launch its finance product to enable Mi customers to buy smartphones with a cardless EMI option. The company also aligns with other digital consumer partners such as Amazon, Flipkart, UpGrad and Zefo. This year the startup aims to expand its services into travel and healthcare sectors as well as create more credit products.
The company claims to process over 300K application per month and disburse more than 3 crore in a day. Furthermore, it aims to reach a run rate of Rs 3,000 crore disbursals by December 2018.
Earlier this month, the company had announced its acquisition of AI-based intelligence platform, PhotographAI. This was the digital lender’s first acquisition and was done to refine its customer onboarding experience.