Buy Now Pay Later (BNPL) startup ZestMoney said that it had raised $50 million from Zip Co. The company’s existing investors like Goldman Sachs, Quona Capital, Xiaomi and Alteria Capital also participated in the funding. The company also said it is planning to utilise the funds to develop the product suite, increase the transaction network, strengthen its balance sheet capacity and launch new business groups in insurance and savings. ZestMoney also got an insurance license from the Insurance Regulatory and Development Authority of India (IRDAI).

Lizzie Chapman, CEO & Co-founder of ZestMoney, said, “The investment by Zip is a confirmation of our position as the market leader in the BNPL category. The transformation to Pay Later solutions is a global event and draws the attention of young digital users looking for transparency, honesty and no hidden charges in financial products.”

“Last year, we have seen applications for BNPL increase by 5X on our platform. We will continue to invest in developing partnerships with our merchant network and hiring the best talent. We believe that India will come out as the largest BNPL market in the world in the next five years,” Chapman added.