ImpactAlpha, April 24 – Bangalore-based fintech firm ZestMoney was founded in 2015 by a trio who worked at a payday loan company and wanted to create a better credit experience for consumers with few alternative borrowing options. The company has raised $20 million in a Series B funding round led by emerging market fintech investor Quona Capital.
ZestMoney is a digital lender that approves customers for lines of credit, which it then it pairs with voucher codes that customers can use for shopping online at partner merchants like Amazon. Its customers then repay the the line of credit at a fixed monthly rate, with no penalty for pre-payment.
“Zest is India’s first completely automated lending platform designed for underserved consumers,” according to Omidyar Network’s profile of Zest. Omidyar re-upped its investment in Zest through the company’s Series B round. Reinventure, Ribbit Capital, and PayU also backed the round.