As an industry-first consortium, IIFL Finance will gain access to a new customer base on the ZestMoney platform, which has so far disbursed USD 1 billion through its platform, a release said.
IIFL Finance has debt assets (AUM) of USD 6.5 billion (over Rs 53,839 crore).
“Both the partners believe that the business through this (one-to-one) alliance can be scaled up to create a loan book of USD 1 billion over a period of 2-3 years,” the release said. ”
Partnership complies with recent reserve Bank of India The company said guidelines on digital lending, ZestMoney will also act as a sourcing and servicing partner throughout the customer journey.
Earlier in June this year, reserve Bank of India (RBI) had barred credit facilities provided by non-bank prepaid payment instrument issuers from loading on prepaid payment instruments (PPIs) such as wallets and prepaid cards.
Nirmal Jain, Founder, IIFL Group and Managing Director, IIFL Finance, said that the partnership with ZestMoney will help IIFL provide customers with inaccessible or ineligible credit for bank credit.
ZestMoney, which started operations six years ago, has a strong customer base through deep integration with over 10,000 online merchants and 75,000 physical stores.
“We are seeing a solid demand in our online and offline partners and this partnership will help us drive demand and learn from the deep financial expertise and digital underwriting capabilities created by IIFL over the past three decades,” said Lizzie Chapman, CEO & Co. – said the founder of ZestMoney.
Other lending partners of ZestMoney are Aditya Birla Finance, Tata Capital, Piramal Finance and csb bank,