DMI Group Acquires Troubled ZestMoney In A Distressed Sale

Delhi NCR-based DMI Group has acquired troubled fintech startup ZestMoney in what appears to be a distress sale. 

The development comes a few weeks after the BNPL startup’s top brass internally told its employees that ZestMoney would shut down operations by the end of December 2023. 

As part of the deal, the Group will have the exclusive right to use all Zest brands and the company’s NBFC arm, DMI Finance, will be the preferred lender on the BNPL platform.

In a statement, DMI said that the acquisition will enable it to deploy ZestMoney’s checkout financing platform to its product suite to widen engagement with current and potential customers. 

DMI also said it will leverage its customer base, balance-sheet strength and significant risk-management experience to drive growth across ZestMoney’s online and offline merchant network. 

“… We have been partnered with ZestMoney for 8+ years in various capacities. We firmly believe that this acquisition will be an important step in our journey to provide digital financial inclusion at scale across India,” said DMI cofounder and joint managing director Shivashish Chatterjee.

Commenting on the announcement, ZestMoney’s chief operating officer (CEO) Mandar Satpute added, “DMI has been at the forefront of digital lending in India. They bring strong capital support and deep expertise. DMI has been an early supporter of ZestMoney and we are very excited to take our partnership to a whole new level.”

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