zestmoney: IIFL Fin and ZestMoney Partner to Build USD 1 Billion Loan Portfolio in 2-3 Years

Non-bank financial firm IIFL Finance and digital finance platform EMI ZestMoney on Friday announced a partnership through which they aim to have a loan portfolio of USD 1 billion (about Rs 8,274 crore) over the next 2-3 years. Under this partnership, IIFL Finance will provide financing to potential new customers while making online and offline purchases through the ZestMoney platform.

As the industry’s first association, IIFL Finance will gain access to a new customer base on the ZestMoney platform which has so far disbursed $1 billion through its platform, according to a statement.

IIFL Finance has a Loan Assets Under Management (AUM) of USD 6.5 billion (over Rs 53,839 crore).

“Both partners believe that the business through this alliance (one on one) can be scaled up to build a loan portfolio worth $1 billion over a 2-3 year period,” says the communicated.

The partnership is in line with recent RBI guidelines on digital lending, the company said, adding that ZestMoney will also work as a supply and service partner throughout the customer journey.

Earlier in June this year, the Reserve Bank of India (RBI) cracked down on credit facilities provided by issuers of non-bank prepaid payment instruments to load lines of credit on prepaid payment instruments (PPIs) such as wallets and prepaid cards.

Nirmal Jain, Founder of IIFL Group and Managing Director of IIFL Finance, said the partnership with ZestMoney will help IIFL provide credit to customers who are inaccessible or ineligible for bank credit.

ZestMoney, which started operations six years ago, has a strong customer base thanks to deep integration with more than 10,000 online merchants and 75,000 physical stores.

“We have seen strong demand from our online and offline partners and this partnership will help us meet demand and leverage the deep financial expertise and digital underwriting capabilities that the IIFL has built over the of the past three decades,” Lizzie Chapman, CEO & Co.-founder of ZestMoney, said.

ZestMoney’s other onboard lending partners are Aditya Birla Finance, Tata Capital, Piramal Finance and CSB Bank.

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