India’s DMI Group snaps up BNPL fintech ZestMoney

ZestMoney Acquisition by DMI Group:
- Indian BNPL start-up ZestMoney acquired by DMI Group in a fire sale.
- Deal grants DMI Group brand rights and positions DMI Finance as the preferred lender on Zest’s platform.
- DMI expands its product suite with Zest’s checkout financing platform.
ZestMoney’s Troubled Journey:
- ZestMoney faced difficulties, leading to reports of closure in December.
- Once valued at $450 million, ZestMoney struggled to find a buyer or raise additional capital.
- Previous attempts at acquisition, including one by PhonePe, fell through in April 2023.
Challenges for ZestMoney:
- Difficulty raising new capital and concerns over business model and debt liability.
- Failed acquisition by PhonePe led to the departure of all three original founders in May.
DMI Group’s Strategic Move:
- DMI Group aims to widen engagement with customers and expand its fintech merchant network.
- Shivashish Chatterjee sees the takeover as a crucial step in providing digital financial inclusion at scale across India.
Financial Details undisclosed:
- The financial terms of the ZestMoney acquisition by DMI Group have not been disclosed.