DMI Group announced the acquisition of the buy now pay later platform, ZestMoney. This acquisition positions DMI Finance, the NBFC arm of DMI, as the preferred lender on the Zest platform moving forward.
The specific details about the size of the deal have not been disclosed, but it is characterized as a distress sale.
The acquisition comes shortly after the formal shutdown of ZestMoney, which had laid off its entire workforce by December.
Post-acquisition, DMI will gain exclusive rights to all Zest brands. This move is expected to allow the group to expand its engagement with the user base of ZestMoney and its product suite.
Founded in 2008, DMI is a financial services conglomerate with core businesses in digital, housing, and asset finances. It has raised over $1.5 billion in investments from notable investors, including banks.
DMI Finance, part of the DMI Group, is a pure-play digital lender offering various loan products, including consumption, personal, and MSME loans. In April 2023, it closed a $400 million equity round led by Mitsubishi UFJ Financial Group, Inc.
ZestMoney, which raised around $125 million in its lifetime, faced challenges due to stringent regulations on buy now pay later (BNPL) startups and a tough funding environment.
The company opted for a complete shutdown, making it the second company to be acquired by a larger group after the exit of all co-founders. Last year, GoMechanic experienced a similar acquisition by LifeLong Group amid financial irregularities and the departure of all three co-founders.
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