Xiaomi had made a $13.4 million investment in Bengaluru-based digital lending platform ZestMoney in an extended Series A round of funding. The company was reportedly in advanced stages of negotiations to pick up a stake in ZestMoney since April. The digital lending platform has already worked closely with Xiaomi for the Mi Finance platform, which enables potential Mi customers to buy smartphones with a cardless EMI option. ZestMoney has also worked with big e-commerce giants like Amazon and Flipkart in India.
“We also want to expand use cases for the core ZestMoney Affordability Product – making it the digital consumer’s preferred lifestyle financing solution. We are very excited to have Xiaomi as a new investor in the company given the success they have had in building digital credit products in China,” said Lizzie Chapman, co-founder and Chief Executive officer of ZestMoney.
The funding round led by Chinese smartphone manufacturer Xiaomi also saw the participation of ZestMoney’s existing investors PayU, Ribbit Capital and Omidyar Network.
ZestMoney recently acquired PhotographAI, a platform offering artificial intelligence as a service platform. With the acquisition, it is interpreted that ZestMoney may add features like object recognition through images in future by using PhotographAI’s computer vision tools. The company had picked up seed funding of $2 million in 2015 and last raised $6.5 million funding in February 2017 by PayU, reports MoneyControl.
ZestMoney was founded in 2015 by Lizzie Chapman, Priya Sharma and Ashish Anantharaman. The digital lending platform enables instant account opening and real-time credit approval, combined with digital loan servicing and repayments technology.