Australia’s Zip enters Indian buy-now-pay-later space with ZestMoney deal

(Reuters) -Australian buy-now-pay-later (BNPL) firm Zip Co Ltd said on Wednesday it would invest $50 million to acquire a minority interest in Indian peer, ZestMoney, as part of its plans to tap new growth markets and add investors.

The investment comes at a time of increasing popularity of the BNPL sector, where customers pay in instalments without any interest for their online purchases, as the COVID-19 pandemic pushed young shoppers to look for easier access to credit.

Zip, Australia’s second-biggest BNPL player, is expanding its footprint in the rapidly growing sector, acquiring companies in Europe and the Middle East over the past one year.