- DMI Group acquires struggling BNPL startup ZestMoney after closure plans.
- DMI gains full rights to merge ZestMoney into its digital lending arm.
- The dramatic deal caps a turbulent year after ZestMoney’s $450 million valuation peak.
Indian financial services conglomerate DMI Group revealed its acquisition this week of Goldman Sachs-backed buy now, pay later (BNPL) firm ZestMoney after the startup announced closure plans last month. Terms remain undisclosed.
Distressed ‘fire sale’ drama
Reports characterized the deal as a distressed ‘fire sale’ with investors taking losses after ZestMoney’s founders resigned last May amidst acquisition talks falling through with PhonePe. The startup also laid off 20% of staff in 2023, signaling turmoil.
DMI’s ambitious turnaround
DMI gains ZestMoney’s full brand rights and checkout financing platform to merge into its digital lending arm. With over $1.5 billion raised historically and other business lines in housing and asset management, DMI provides ample resources to attempt a turnaround.
Currently, the BNPL sector faces global headwinds, but DMI sees an opportunity to leverage its balance sheet and risk experience to boost growth across ZestMoney’s 80,000 merchants.
The dramatic acquisition caps a turbulent year for once high-flying ZestMoney after its $450 million valuation peaked. Now, its future hopes ride on integration with new owners of DMI in India’s turbulent but massive finance industry.
