Aditya Birla Finance And DMI Finance In Talks To Buy ZestMoney Portfolio

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ZestMoney is a company in Bengaluru that gives loans to people, especially those who don't have credit cards or other ways to borrow money. 


Recently, they said they will stop working by the end of this month. Now, two other companies, Aditya Birla Finance, and DMI Finance, are thinking about buying ZestMoney.


These companies, Aditya Birla Finance and DMI Finance, have worked with ZestMoney before. They are interested in ZestMoney's technology and the loans it has given to people, which are worth about ₹400 crore. 

ZestMoney has many customers and a special technology that helps banks and other finance companies work together to give loans. This technology was made after the Reserve Bank of India (RBI) made new rules for digital lending in 2022.


The talks about this deal are happening now, and they might reach an agreement soon. ZestMoney was started in 2015 by three people who know a lot about finance technology. It has grown big, with about 17 million users and acceptance in many online and offline shops.


ZestMoney was doing well but faced some problems recently. They had to tell their workers about closing down this month. This happened because the companies that lent them money stopped doing so, creating financial issues for ZestMoney. 

The two companies are interested in buying ZestMoney, Aditya Birla Finance, and DMI Finance, want to use ZestMoney's technology and manage the loans it has given out. They are also looking at how to get back the money from ZestMoney's customers if ZestMoney shuts down.


Even though ZestMoney was successful and had many users, it faced difficulties, like a failed deal with another company, PhonePe, and a loss of investment from PayU, a big investor. They got some money in July 2023, but it wasn't enough to solve their bigger problems. 

The final details of the potential sale are not clear yet, but it could help Aditya Birla Finance and DMI Finance get more customers and improve their technology for lending money.

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