India’s DMI Group acquires Goldman Sachs-backed ZestMoney in ‘fire sale’

(From left) ZestMoney founders Priya Sharma, Lizzie Chapman, and Ashish Anantharaman / Photo credit: ZestMoney

DMI Group, an Indian financial services firm, has acquired Goldman Sachs-backed startup ZestMoney. The two companies did not disclose the terms of the deal.

A report from TechCrunch characterized the deal as a “fire sale,” with a source saying that “every investor in ZestMoney lost money.”

Following the acquisition, DMI will hold exclusive rights to all of ZestMoney’s brands, including the startup’s checkout financing platform.

In a statement, DMI said that it will bring its “customer base, balance-sheet strength, and significant risk-management experience” to drive growth across ZestMoney’s 80,000 merchants.

The acquisition caps off a turbulent year for ZestMoney, which was once valued at US$450 million. The Bengaluru-based buy now, pay later firm had been in acquisition talks with PhonePe early last year, but when the talks fell through, ZestMoney’s three founders – Priya Sharma, Lizzie Chapman, and Ashish Anantharaman – resigned in May 2023.

It had also laid off over 100 people, which accounted for 20% of its workforce, in April 2023. Last month, the startup announced plans to shut down.

DMI was founded in 2008, with businesses covering digital finance, housing finance, and asset management. The firm has raised over US$1.5 billion in funding to date.

The group operates a digital lending service called DMI Finance, offering products such as consumption, personal, and MSME loans.

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