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Zest Money, a troubled buy now, pay later (BNPL) startup, has received a much-needed lifeline from its existing investors. The company has raised $5-7 million from its existing investors, including Sequoia Capital India, Ribbit Capital, and Matrix Partners India.
The fresh capital infusion will help Zest Money to tide over its current financial difficulties. The company has been facing a liquidity crunch in recent months, due to a slowdown in its loan book growth and rising defaults.
The fresh capital will be used to repay debt, improve collections, and invest in technology and marketing. Zest Money is also exploring strategic options, such as a merger or acquisition, to raise additional capital.
The company’s co-founder Lizzie Chapman said that the fresh capital infusion will help Zest Money to “get back on track”. She added that the company is “committed to providing its customers with a seamless BNPL experience”.
The investment in Zest Money is a sign of confidence from its existing investors. The company has a strong team and a proven track record. Zest Money is well-positioned to emerge as a leading BNPL player in India, once the market stabilizes.
