- Zip Co is entering the Indian market with a strategic investment in ZestMoney.
- ZestMoney is one of the largest and fastest-growing Indian BNPL operators.
- India is likely to emerge as a promising BNPL market for high-growth targets.
- Zip is well positioned to make headway towards becoming the fastest growing eCommerce payment method in the coming five years.
A strong player in the global buy now pay later (BNPL) space, Zip Co Limited (ASX:Z1P) is set to enter the Indian market with a strategic investment of US$50 million in ZestMoney.
In exchange for the investment, the ASX-listed company will acquire a minority shareholding in ZestMoney. Zip is likely to increase its shareholding over time. The strategic investment is expected to complete prior to the end of September.
The development falls in line with the firm’s global investment strategy to expand the reach of its BNPL business across different parts of the world.
With an extensive network, Zip will be able to support its regional and global partners in multiple markets, providing access to fair and transparent payment products to everyone, everywhere.
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Also Read: Why do Millennials love Buy Now, Pay Later?
ZestMoney: A highly scalable business
Founded in 2015, ZestMoney is the fastest-growing BNPL operator in India. It hosts around 11 million registered users, partners with over 10,000 online merchants on the platform and has a point of presence in more than 75,000 physical stores.
It was recognised as a ‘Technology Pioneer’ by the World Economic Forum in 2020 for making affordable digital finance accessible to a large number of people.
In just few years, ZestMoney has emerged as one of the largest AI-driven BNPL platforms in India.
Is Indian market a big addressable opportunity for Zip?
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Following changing consumer spending trends, there have been high prospects of India arising as one of the largest markets at a global level with more than US$300 billion in BNPL payment volume by fiscal year 2026.
As per data, the penetration rate of online shopping is currently low in India with only 100 million shoppers making online transactions. It represents less than 10% of the Indian population and is likely to soar to 220 million in 2025.
The new partnership is a crucial step forward for the ASX-listed company to make headway in becoming the fastest-growing eCommerce payment method in the coming five years.
Stock information: Z1P stock was trading at AU$6.250, up by 0.160% on the Australian Securities Exchange (ASX).