India-based fintech developer ZestMoney has raised $6.5m in a series A round led by payments processing firm PayU, a subsidiary of media company Naspers, Techcircle reported today.
PayU invested $3.7m in return for a 20% stake, while the remaining capital came from Ribbit Capital and Omidyar Network.
ZestMoney operates a platform that enables online shoppers to instantly open bank accounts to obtain a loan for their purchases. The approach, which relies on data such as credit information bureaus, allows for monthly instalments without the need for a credit card.
ZestMoney makes it possible for consumers to secure a loan even if it is their first one.
Ribbit Capital and Omidyar Network previously provided $2m in seed funding in September 2015.
PayU’s commitment follows its acquisition of mobile payment technology producer Citrus Pay for $130m in cash in September 2016. That deal provided an exit to e-commerce companies eContext Asia and Beenos Asia.