Australian buy-now-pay-later Zip enters India with $50m investment

FILE PHOTO: A logo for the companies Afterpay and Zip is seen in a store window in Sydney, Australia, July 9, 2020. REUTERS/Stephen Coates

Australian buy-now-pay-later (BNPL) firm Zip Co Ltd said on Wednesday it would invest $50 million to acquire a minority interest in Indian peer, ZestMoney, as part of its plans to tap new growth markets and add investors.

The investment comes at a time of increasing popularity of the BNPL sector, where customers pay in instalments without any interest for their online purchases, as the COVID-19 pandemic pushed young shoppers to look for easier access to credit.

Zip, Australia’s second-biggest BNPL player, is expanding its footprint in the rapidly growing sector, acquiring companies in Europe and the Middle East over the past one year.

Its investment in Bengaluru, India-based fintech ZestMoney marks its entry into a market with a massive young demographic, which is gravitating more towards cash-less payments and has a huge growth potential in the BNPL and e-commerce space.

“With deep partnerships with online and offline merchants and lending partners, ZestMoney is poised to accelerate growth as the market develops,” Zip Chief Executive Officer Larry Diamond said.

Zip said it had negotiated terms to increase its shareholding in ZestMoney over time.

The BNPL space saw established players testing newer areas of business to power growth, with Australian BNPL giant Afterpay getting a $29 billion offer from Square Inc, and U.S. payments giant PayPal acquiring a Japanese firm for $2.7 billion.

Reuters

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.