KreditPE’s Ashwin Bhambri Extends a Lifeline to ZestMoney in an Open Letter

• ByStartupStory     |    December 15, 2023

Ashwin Bhambri, Co-Founder of KreditPE, has penned an open letter to ZestMoney’s founders, employees, and investors, expressing deep respect for the impact created by the BNPL platform. This heartfelt letter comes against the backdrop of ZestMoney’s recent announcement of shutting down operations by the end of December. Bhambri proposes a lifeline to the beleaguered fintech through a potential acquisition and merger with KreditPE.

The open letter, posted on LinkedIn, conveys a heartfelt appreciation for what ZestMoney has built and the impact it has had. Bhambri goes on to propose the acquisition of ZestMoney, stating, “We (at KreditPE) love the product and would like to propose acquiring ZestMoney and run it. We firmly believe we’ll make it 100 times more successful than #PhonePe.”

Bhambri outlines KreditPE’s current focus on offering sachet loans, credit lines, and UPI-Wallet services, with a specific emphasis on serving New to Credit (NTC) users. The letter highlights a strategic vision where a postpaid UPI wallet service could be a more viable option for the aspirational Indian user.

The co-founder underscores KreditPE’s competitive edge, boasting a lending algorithm and format that, according to Bhambri, outmatch almost every other lending fintech. He draws attention to the significant defaults in the lending space and KreditPE’s strategy of survival through performance-based lending.

Bhambri extends a comprehensive offer to merge and run ZestMoney with KreditPE, citing the latter’s prowess in innovation and frugality. The letter positions KreditPE as a potential catalyst for reviving ZestMoney, focusing on consumer-durable finance for vetted users while navigating the challenges of the market.

The Indian startup ecosystem has witnessed a series of shutdowns in recent weeks, with ZestMoney joining the list. Teen-focused neo-banking platform Akudo and B2B networking platform Anar also announced their closures, citing various challenges, including business model issues.

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