The fintech's net expenses grew to Rs 543.8 crore in FY22, compared to 89.3 crore in FY21
BNPL (Buy Now Pay Later) start-up ZestMoney recorded a 216 per cent surge in its net losses in FY 22, which went up to Rs 398.8 crore as compared to Rs 125.8 crore in FY 21. This elevated figures were due to the sharp rise in the company's expenses in the current financial year, Inc42 reported.
The fintech's net expenses grew to Rs 543.8 crore in FY22, compared to 89.3 crore in FY21. It was heavily affected by bad loans this fiscal year as the service deficiency charges increased to Rs 233.4 crore in FY22 from 63.3 crore in FY21.
Despite a rise in expenses, the company managed to generate good revenue. In FY22, this rose to Rs 145 crore, up from Rs 89.3 crore in FY21, signaling a 1.6x jump. ZestMoney also registered a 68.6 per cent increase in revenues from operations at Rs 138.4 crore in FY22, up from Rs 82 crore in FY21.
Partnering with several non-banking finance companies (NBFC) ZestMoney provides its services to retail customers and merchants. The firm earns revenues through the integration with merchants in both online and offline modes.
The BNPL market in post-pandemic India seems to be a promising one in terms of expansion. A Goldman Sachs report estimated that the BNPL market is expected to grow 9 per cent in 2024 from 3 per cent in 2020. A survey, reported in the Times of India claimed that the BNPL market would reach $40 billion to $45 billion in 2026 from $3 billion to $3.5 billion in 2022.