DMI Group has acquired ZestMoney, a company facing financial problems. ZestMoney had failed to raise funding. The terms of the deal have not been disclosed at this time.
The group said in an official statement, ‘DMI Finance will invest in the Zest platform. Through this acquisition, DMI will have exclusive rights to use all the brands of ZestMoney.
This acquisition will help DMI enhance engagement with existing and potential customers by adding the ZestMoney checkout financing platform to its product suite. Under the deal, DMI will bring its customer base, balance sheet strength and rich risk-management experience, which will help in the growth of Zest’s online and offline merchant network.
Mandar Satpute, Chief Operating Officer, Zest, said, ‘DMI has been a pioneer in digital lending in India. They are bringing deep expertise and capital support. DMI has been supportive of Zestmoney since its inception and we are very excited to take our partnership to a completely different level.
Zestmoney was on the verge of closure
ZestMoney’s troubles started last year when the company’s acquisition with PhonePe failed. After this, three co-founders and some important officials of the company resigned.
In December 2023, the company had informed its employees about shutting down operations. The company had then said that the remaining 150 employees would lose their jobs. ZestMoney, founded in 2015, has so far raised funding of $130 million and has 17 million registered users.
