Xiaomi is certainly not new in investing versus startup, but this time it does so with a social base. In fact it is the ZestMoney financing startup in India, the new project to which Xiaomi brings an economic contribution, with the aim of helping the buyers of their smartphones with subsidized loans or EMI options, which they may not be able to obtain otherwise. The amount invested in this round in $ 13,4 million, a figure obtained not only from the Chinese company but also from other major investors such as PayU, Ribbit Capital and Omidyar Network.
ZestMoney, owned by Camdem Town Technologies and based in Bengaluru, is already in the business of what is called “lifestyle financing”, creating a new economic offering called ZestMoney Accessibility Product. Customers who log in to the ZestMoney website or app will be helped to open bank accounts instantly and thereby will be able to take advantage of the EMI options even if they do not have a credit card. The technology is used to correctly assess the creditworthiness of applicants.
ZestMoney is the new social project of Xiaomi
In reality, the Indian company is an old acquaintance of Xiaomi who in the past has already used their services to launch the Mi Finance operation with the same objective as above. The newly raised funds will be used by ZestMoney to enhance its technology capabilities and the scope and type of financing options its clients will be able to leverage in the future, including sectors such as travel and healthcare. The company claims to receive 3 lease requests per month for loan processing. For Xiaomi, such investments are only an extension of what they have already done in their country of origin: China and ZestMoney can benefit from this association through their direct experience in the domain. In short, once again Xiaomi is on the side of users, allowing them not to break small dreams.
