Consumer lending fintech company: ZestMoney business model

Zestmoney business model

Talking about our traditional banking system that is quite slow in terms of providing small credit facilities to its customers. Their speed of issuing credit to their customers is braked by lots of documentation and formalities that are needed to be settled. 

Although there are credit card facilities available by financial institutions but many of the applicants are troubled with heavy bills.

No one would have dreamed of getting instant credit for fulfilling financial needs or for shopping swiftly. Thanks to the emergence of the latest fintech companies that are backed by strong technology for serving short-term borrowers. 

Today, we will be exploring the business of one of the fast-growing fintech companies, ZestMoney. Additionally, will get an insight into ZestMoney business model for generating clarity on its services and revenue model.

About: ZestMoney

It is a consumer lending fintech company that brings accessible and easy credit facilities for its users. ZestMoney allows its customers to avail themselves of the buy now pay later feature. This feature allows the users to use the funds and pay later in easy installments. 

Their target customers involve people who are in need of short-term borrowings for fulfilling their personal needs. Also, ZestMoney is making its acceptance in 2 or 3 tier cities or the areas where there is a lack of financial services. This is helping them in capturing most of the audience who are seeking an easy loan solution.

ZestMoney is founded by  Lizzie Chapman, Priya Sharma, and Ashish Anantharaman with the aim of facilitating a simple credit solution for people. Lizzie Chapman is owning a position as CEO, Priya Sharma is CFO, and Ashish Anantharaman is CTO of the company. 

Initially, three of them have worked together at a UK-based finance company. Seeking an improvement in the credit services in India they jump in by introducing their own fintech unit. They explore that many of the credit seekers were not encountering a smooth credit system due to their non-attractive credit history. ZestMoney brought in a change by releasing a streamlined arrangement of credit delivery to borrowers in a hassle-free manner.

As we are seeing the acceptance of new businesses and services by our Indian community very promptly, ZestMoney is also building an easy space for its innovative lending business. 

ZestMoney business model  

Not every individual can avail of credit card facilities as there are certain conditions that are needed to be fulfilled. And even if one's profile gets approval of operating a credit card, the user still feels uneasy about the hidden charges levied on their transactions. ZestMoney on the other claims to be a transparent network that asks for no extra cost. 

ZestMoney believes that while shopping for an expensive item people may hesitate to spend the entire big amount. While they are more convenient in paying with small flexible or fixed installments. 

What if the customers who are linked with their network get suitable flexibility of paying in small amounts? Then this condition will create a win-win situation for both the business from whom the customer is willing to buy and for the ultimate customer.  

Now, considering the ZestMoney business model, it works on the above approach. They have partnered with different online and physical stores for bringing credit services for their users. Providing an easy credit facility this consumer lending fintech company generates income by charging interest from the borrowers. Additionally, they earn a commission from the partnered businesses as they are bringing in more customers to their door.

ZestMoney has collaborations with 8000 plus brands and is on a journey of getting more such partnerships for enhancing its growth and service visibility among shoppers. The brands are not limited to clothing and electronics firms but they own a diverse category. 

Some of its prime categories are electronics, fashion, furniture, education, healthcare, etc. This simply depicts that this fintech company got colossal associate brands for generating healthy revenue from its business.

ZestMoney marketing strategy 

This consumer lending fintech company like any other new company needs to promote its presence among a large audience. ZestMoney is aggressively marketing its services on different social media platforms and releasing commercial campaigns in a timely manner.

Also, it is collaborating with prominent stars and models to attract more users to its base. In one of its latest commercial campaigns where it showcased its service in a very innovative manner. Along with emphasizing more about its USP of Zest now, pay later.

Take away

In the article above we spotlight the crucial and basic facts about ZestMoney. Moreover, we analyzed the functioning and unique attributes of their business. They produce easy credit services and buy now, pay later system that makes the fund facilitation more swift and accessible. 

We talked about the ZestMoney business model and how it is leveraging strong technology to serve its users. Eventually, we unfold the marketing strategy of ZestMoney for developing know-how of its positioning techniques.