<article>Bengaluru-based digital lending startup <a href="https://www.dealstreetasia.com/?s=ZestMoney" target="_blank" rel="noopener noreferrer">ZestMoney</a> has raised $20 million in a Series B funding round, led by US-based venture capital firm <a href="https://www.dealstreetasia.com/?s=Quona Capital" target="_blank" rel="noopener noreferrer">Quona Capital</a>, it announced on Tuesday.</article>

Bengaluru-based digital lending startup <a href="https://www.dealstreetasia.com/?s=ZestMoney" target="_blank" rel="noopener noreferrer">ZestMoney</a> has raised $20 million in a Series B funding round, led by US-based venture capital firm <a href="https://www.dealstreetasia.com/?s=Quona Capital" target="_blank" rel="noopener noreferrer">Quona Capital</a>, it announced on Tuesday.
Australian fintech investor <a href="https://www.dealstreetasia.com/?s=Reinventure" target="_blank" rel="noopener noreferrer">Reinventure</a> also backed the round, along with existing investors <a href="https://www.dealstreetasia.com/?s=Ribbit Capital" target="_blank" rel="noopener noreferrer">Ribbit Capital</a>, <a href="https://www.dealstreetasia.com/?s=Omidyar Network" target="_blank" rel="noopener noreferrer">Omidyar Network</a> and <a href="https://www.dealstreetasia.com/?s=PayU" target="_blank" rel="noopener noreferrer">PayU</a>.
The startup will use the funding to augment its technology and data science areas for expanding acceptance of ZestMoney as a digital payment instrument (online and in-store), as well as enhancing product capabilities and acceptability, it said in a statement.
With the fresh funding, ZestMoney is also looking to deepen integration with partner NBFCs and online retailers.
&#8220;Digital affordability solutions are witnessing unprecedented growth in India, and this funding will help us in making EMI financing a reality for a billion Indians by accelerating our efforts to make ZestMoney ubiquitous,&#8221; Lizzie Chapman, co-founder &amp; CEO of ZestMoney said.
&#8220;Quona and Reinventure are both specialist fintech venture funds. There’s definitely a lot of momentum in our space right now, with everyone in ecommerce talking about affordability through EMI and we’re just riding off the back of that,&#8221; he added.
Founded in 2015 by Chapman, Priya Sharma, and Ashish Anantharaman, ZestMoney uses AI and machine learning technology to do risk profiling of e-commerce consumers who opt for equated monthly instalment (EMI) payments. Simultaneously, the startup also works with financial institutions to provide loans to such consumers.
Till date, ZestMoney has raised a total of $42 million &#8211; this includes the current funding.
In August last year, ZestMoney reportedly raised $13.4 million in an extension of its Series-A round led by Chinese smartphone maker Xiaomi. The round also saw participation from existing investors PayU, Ribbit Capital and Omidyar Network. It raised $6.5 million in a series A round led by PayU in February 2017.
Last year, the company also acquired artificial intelligence platform PhotographAI to boost its technology and achieve deeper access to consumer credit.
ZestMoney is among the burgeoning list of startups in the digital lending space, which have either raised fresh funding or are looking to raise funds with the liquidity situation improving within the country.
Last month, Vivriti Capital had raised Rs 110 crore (about $16 million) in equity in a fresh round of funding from its existing investor Creation Investments. The same month, Mumbai-based online lending startup SMEcorner raised about $12.6 million (Rs 90 crore) in a fresh round of funding led by Quona Capital, and Jai Kisan raised $1.5 million in a seed round of funding led by Blume Ventures.
In November, Kogta Financial (India) Ltd, a retail-focused non banking financial company (NBFC), closed an equity funding round of Rs 154 crores ($21.6 million) led by a fund managed by Morgan Stanley Private Equity Asia and existing investor IIFL Seed Ventures. In September, Kissht had raised $30 million in a Series C round led by Vertex Ventures SEA and India and and Sistema Asia Fund.
Also Read:
<a href="https://www.dealstreetasia.com/stories/smecorner-quona-124417/">Indian lending startup SMEcorner bags $12.6m led by Quona Capital</a>
<a href="https://www.dealstreetasia.com/stories/creation-investments-vivriti-125507/">Creation Investments injects $16m more in Indian lending startup Vivriti </a>

The company will use the financing proceeds towards technology and data science for expanding acceptance of ZestMoney as a digital payment instrument.

Quona Capital leads $20m funding in Indian lending startup ZestMoney

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Quona Capital leads $20m funding in Indian lending startup ZestMoney

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief