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Bangalore, India based lender ZestMoney has raised $6.5m in Series A funding led by PayU. ZestMoney provides online shoppers the facility to open accounts instantly with banks providing loans. Users can then avail equated monthly installments (EMI) to make purchases without having to use a credit card.
Existing investors Ribbit Capital and Omidyar Network also participated in the round, a person directly aware of the deal told Techcircle on Wednesday. PayU will invest $3.7 million into the startup for a 20% stake in the company, the person added. Lizzie Chapman, the chief executive and a co-founder of ZestMoney, declined to comment on the development. An email query sent to PayU did not elicit any response by the time of filing this report. The Times of India earlier in the day reported that PayU is investing $3.7 million in ZestMoney, but it didn’t specify the overall investment in the startup.
