ZestMoney, a fintech startup in India that offers consumer financing solutions, recently announced that it is pivoting to a SaaS (Software as a Service) model. This means that it will now offer its technology platform as a service to other businesses, allowing them to offer financing options to their customers. ZestMoney’s technology platform uses AI and machine learning to assess creditworthiness and offer loans to consumers. PhonePe, a digital payments company in India, recently announced that it is waiving off an $18 million loan that it had extended to its merchant partners during the COVID-19 pandemic. The company said that it took this decision to support its merchant partners during a difficult time. The loan was provided through a program called PhonePe Booster, which offers short-term loans to merchants to help them manage their cash flow.
ZestMoney, a Bengaluru-based fintech startup, has pivoted to software-as-a-service (SaaS) as its core business, and has rebranded itself as Zolve. The company aims to provide software tools to global banks and financial institutions that would enable them to offer financial services to migrants and non-resident Indians (NRIs). The move comes after the company’s partnership with PhonePe to offer digital credit to consumers was called off, and PhonePe waived off a $18 million loan it had provided to ZestMoney.
Zolve’s software platform is designed to enable financial institutions to serve migrants and NRIs, who typically have limited access to financial services due to their unique circumstances such as lack of credit history, foreign currency transactions, and cross-border payments. The company plans to partner with banks and financial institutions in the US, Canada, and other countries, and provide them with tools such as onboarding, underwriting, and risk management.
The company has already partnered with a few banks in the US and has launched its services in beta mode. It plans to launch its services in Canada soon, and expects to expand to other countries over time. The company has raised $28 million in funding so far, and counts Lightspeed Venture Partners, Blume Ventures, and Quona Capital among its investors.