One of America’s largest banks has just poured some money to help millions of Indians without a credit score secure loans and make purchases online for the first time in their lives.
Bangalore-based ZestMoney announced today that it has raised $15 million from Goldman Sachs and existing investors Naspers Fintech, Quona Capital, and Omidyar Network. Lizzie Chapman, co-founder and chief executive of ZestMoney, told TechCrunch in an interview that the new investment is part of an extended Series B round, the first tranche of which was announced in April this year.
The extended Series B round brings ZestMoney’s total raise to-date to $63 million, she said.
The penetration of credit cards remains very low in India; roughly three in 100 people in the country have a credit card. This has meant that very few people in the nation have a traditional credit score, which banks heavily rely on to establish one’s credit worthiness before issuing them a loan.Read more.