The deal is expected to inked at about $200-300 million, according to the media reports citing sources. The acquisition talks is on-going and is expected to be finalized in the next 3-4 weeks. The fintech startup has so far raised around $140 million from key investors including PayU, Zip, Ribbit Capital, Quona Capital, Xiaomi, Omidyar Network and Goldman Sachs. ZestMoney's revenue during FY2022 is set to increase to ₹145 crore from ₹89 crore in FY2021.
Post acquisition, ZestMoney will continue to operate as a separate entity and the founders will join PhonePe.
Founded in 2015, by Lizzie Chapman, Priya Sharma and Ashish Anantharaman, ZestMoney works on the Pay Now, Pay Later theme. It has more than 17 million registered users across the country. It has the largest network of trader with over 10,000 online partners including Amazon, Flipkart, MakeMyTrip and Nykaa among others. It has presence at over 75,000 offline stores. ZestMoney gives a loan of about 400 crores per month.
Speaking about PhonePe, it has more than 41.5 crore registered users. It entered Financial Services in 2017 and achieved revenue of Rs 1,646 crore in FY21-221 and revenue growth of 138% has been recorded over a year ago.
Founded in December 2015, by Sameer Nigam, Rahul Chari and Burzin Engineer, PhonePe was acquired by Flipkart in April 2016.
PhonePe was valued at $5.5 billion in December 2020 and is now in talks to raise a new funding round at a $12 billion valuation.
Owned by Flipkart, a subsidiary of Walmart, PhonePe has acquired companies like GigIndia, WealthDesk, OpenQ, and IndusOS
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