Deciphering the latest ZestMoney financing and ownership structure

On Wednesday, buy-now-pay-later (BNPL) company ZestMoney announced that it had raised $ 50 million as part of a larger Series C fundraiser. While the Goldman Sachs-backed company did not disclose details of the funding round, Trickypedia has deciphered the resolution of the transaction, including the valuation and current shareholder structure.

According to ZestMoney’s filings in Singapore, the company has raised a total of $ 58 million in this round, into which main investor Zip Co Limited has injected $ 50 million. Collie Capital, Thorney Opportunities, Shaw Share Broking and the existing investors Flourish Ventures, Accion Quona Fund, ON Mauritius and Ribbit Capital have invested the remaining amount.

ZestMoney has raised the new fund according to a valuation of around $ 435 million (after receipt of funds) Trickypedia‘s estimates. As the company will raise more money in the current round, its valuation would change.

Founded in 2015 by Lizzie Chapman, Priya Sharma and Ashish Anantharaman, ZestMoney enables customers to later pay for products in the Rs 50 to Rs 5 lakh range. The company claims its customers can do business on more than 10,000 online sites and 75,000 physical stores across the country.

The company operates in India through its subsidiary Camden Town Technologies, whose operating income increased 2.7 times year over year to Rs 72.4 billion in FY20. A total of Rs. 256.5 billion was spent during the reporting period, while losses in FY20 increased nearly 90% to Rs. 181 billion.

After the allotment of new shares, the joint interests of the founders of ZestMoney were diluted to 19.79%. PayU, Ribbit and On Mauritius, the early supporters of the society, have 16.60%, 12.40% and 11.80% of the shares.

Zip Co Limited has acquired a 12.07% stake in the company, the third largest among investors.

Zest money

In the past few years, BNPL has become one of the hottest categories among loan startups. While established players like EarlySalary, LazyPay, Slice and KreditBee have become the market leaders in this segment, ZestMoney also competes with new age startups such as Bullet Money among others.

In March, KreditBee raised $ 145 million in two tranches from TPG-backed NewQuest Capital Partners and Motilal Oswal Private Equity.

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