EMI Financing Grew by Over 125% in 2019 - ZestMoney Report

ZestMoney, India’s first and largest AI-driven consumer lending platform today revealed that the platform has observed over 125% growth in EMI financing in 2019. Witnessing a 2000% increase in new-to-credit customers from tier-2 and tier-3 cities, digital EMIs make up a huge chunk of today’s economy. EMI financing has led to substantial growth in online sales over the past year for e-commerce giants such as Amazon, Flipkart, Myntra, Paytm, MakeMyTrip, Decathlon, among others. EMI adoption grew by over 84% in tier-1 cities, 140% in tier-2 cities and 145% in tier-3 cities in 2019.

ZestMoney's CEO and Co-founder, Lizzie Chapman stated, “Cash dominance is reducing and EMI adoption is on the rise leading to a healthy financial ecosystem that is driving business growth for many new-age companies. The purchasing powers are witnessing a boost and Indian consumers are spending more than ever using EMI financing. This is no longer a country where people rely on their savings, but a nation where the people want the best they can afford. I believe that 2020 will be a year in history for EMI adoption and growth of financial independence among Indians.”

Indian buyers are no longer held back by the amount of in-hand cash when it comes to purchasing the best. Though India has been a cash economy for ages, digital payments and financing are quickly becoming popular. With the growth of e-commerce in India, a huge range of items are available to the masses. Everything from smartphones, computers, apparel, groceries, appliances, travel tickets and even hotel rooms and complete houses on rent, you can pretty much get anything online. Brands are acquiring a foothold in the Indian market with lucrative deals on products and services that even in a slow economy, are leading consumers to spend more. Myntra, one of the biggest fashion and apparel e-commerce organizations of India provides a range of digital EMI options to buyers, including no-cost EMIs. Encouraging the customers to spend more on premium products, without disturbing their monthly finances. Saving up was the trend earlier, but today the consumers are keener on buying first and paying later. With the help of digital EMIs, consumers are buying products that were out of their reach. By repaying with an EMI plan that suits them the best, they can easily manage their finances and not compromise with their aspirations. 

As Indian consumers get used to the idea of short-term debt, they are reaching out for products that are twice or thrice the price, all because they can pay with affordable instalments. Digitization of financial services has placed them right at the fingertips of the average Indian consumer. With the power of fintech and the Internet, anyone can finance a purchase within seconds. ZestMoney’s average time of approval for an EMI is 12 seconds, and 50% of their customers make a second purchase within the next 6 months. The company serves customers in every single Indian state and union territory, including 17,924 pin codes and 694 out of 736 districts. According to ZestMoney, the average Indian consumer is a 31-year-old, who has no access to easy credit but is connected to the internet. 4 out of 5 customers are from a tier-2 or 3 cities and are driving the growth of EMI financing in the country. 

About ZestMoney

ZestMoney - India’s first and largest AI Driven, EMI Financing Platform, founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015. The company is built as a platform that can meaningfully improve the lives of more than 300 million households in the country, who currently have no access to credit cards or any 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 millions of Indian consumers. ZestMoney is backed by leading investors such as Ribbit Captial, Xiaomi, Naspers Fintech and Omidyar Networks.

The company has over 5 million registered consumers and has raised $42  million to date in 4 financing rounds.

About Lizzie Chapman, CEO & Co-founder, ZestMoney

Lizzie Chapman is the CEO of ZestMoney, which is the largest and the fastest growing consumer lending fintech company in India. ZestMoney has built a platform that can meaningfully improve the lives of more than 300 million households who currently have no access to credit cards or other formal financing options because of insufficient credit history.

Before co-founding ZestMoney, Lizzie worked with Goldman Sachs in London for 5 years, then became an Investment Manager with the Wellcome Trust for 3+ years where she invested in India and financial services companies. In 2011, she moved from the United Kingdom to India in order to set-up and spearhead the India operations for digital lender Wonga, which was one of the biggest fintech companies in the world at that point. In 2013, she joined Development Bank of Singapore and lead the launch of ‘Digibank’, which at that time was India’s first mobile-app only bank.

Lizzie Chapman is a leading figure in the fintech landscape of India. She has been instrumental in driving the adoption of digital finance and financial inclusion initiatives in the country. Lizzie’s vision is to make life affordable to more than 300 million households, who are currently ignored by traditional providers.

Lizzie also serves on the boards of IndiaMart (India’s Alibaba) and India Quotient (early stage investment fund). She is a founding member and serves on the Executive Committee of the Digital Lending Association of India. Lizzie Chapman was honoured with the ‘Female Fintech Leader’ award in 2017.