Online consumer lending start-up ZestMoney has witnessed a 10-fold growth in equated monthly instalment (EMI) financing in Tier III cities in the last one year, bypassing the combined growth of Tier I and II cities.

Bengaluru-based ZestMoney, founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015, conducted the survey among its 50-lakh registered customers in March 2019.

“EMI financing is the key to enable the masses realise their aspirations without financial limitations. Tier II and III cities constitute a majority of the Indian population, and being able to cater to this section of our society is critical for the growth of fintech companies,” said Lizzie Chapman, CEO, ZestMoney.

The study revealed that in 2018-19, 46 per cent of the EMI financing was availed by borrowers from Tier III cities, while 54 per cent was from customers in Tier I and II cities, thus reflecting the growing depth of fintech financing in India.

“Digitally-enabled lending, coupled with the penetration of data, have opened up even the smallest towns for us. We are observing a steep increase in consumers from smaller towns such as Patna, Lucknow, Indore, Bhopal, Jaipur, Ahmedabad, and other towns. Smaller cities continue to be our prime customer acquisition target for this year as well,” added Lizzie.

ZestMoney is working towards improving the lives of more than 30-crore households in the country that have no access to credit cards or other formal financing options because of insufficient credit history.

ZestMoney’s unique platform uses mobile technology, digital banking, and Artificial Intelligence to make life more affordable to Indian consumers.

It is backed by leading investors such as Ribbit Captial, Xiaomi, Naspers Fintech, and Omidyar Networks.

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