Lizzie Chapman: Pioneering Buy Now Pay Later in India’s Fintech Revolution

Lizzie Chapman‘s journey from a childhood filled with Hindi movies in London to becoming the CEO of ZestMoney, a Bengaluru-based startup pioneering Buy Now Pay Later (BNPL) in India, is an inspiring tale of perseverance and seizing opportunities. Growing up in London to working-class parents, Chapman was captivated by Indian culture, thanks to her mother’s association with the Red Cross in India. Weekends in her South Asian-dense neighborhood were often spent watching back-to-back Hindi movies, a passion that even her husband, a South Mumbai native, hadn’t matched. Her deep-rooted connection with India and belief in its potential led her to take a bold step.

Chapman’s remarkable journey began a decade ago when she decided to move to India, even though many of her colleagues weren’t ready to take the leap into the budding Indian fintech landscape. Her fascination with India’s potential as it stood on the brink of a significant economic explosion was her driving force. “I was really fascinated and excited about the potential for what could happen in India,” Chapman says. “Many of my friends say that I took one of the biggest macro bets of all of us. While many were only talking, I packed my bags and came here.”

Chapman’s path to the world of finance and money was born out of her personal struggles with financial constraints. “I grew up with no money, I got quite fascinated by money at university and particularly trading,” she recalls. Despite coming from a family with no stock ownership experience, she recognized the potential of money and investment even with small amounts. This fascination with trading led her to Goldman Sachs, where she started as an associate. Afterward, she joined the Wellcome Trust, a charitable organization, before taking the leap to move to India. In 2011, she joined Wonga, a British digital lending company, and relocated to India. At that time, fintech in India was still in its nascent stage, and many didn’t take it seriously. However, it was a pivotal move as it set the stage for her future endeavors.

Despite the eventual closure of Wonga, Chapman’s fintech journey was far from over. In 2015, Chapman co-founded ZestMoney, recognizing the credit gap in the Indian market. The company aimed to provide access to funds to individuals without credit cards or formal financing options due to limited credit history. This was the time when fintech in India was just starting to gain traction. Chapman and her team identified the pressing issue of limited access to credit for many individuals. They recognized the potential in the BNPL market and decided to focus 99 percent of their efforts on this segment. The demonetization of high-value currency in India, along with the government’s push for digitization, created a favorable environment for ZestMoney’s expansion. The company has raised approximately $120 million from investors, including notable names like Goldman Sachs, Omidyar Network, and Naspers.

ZestMoney allows customers to defer payments for products ranging from ₹50 to ₹5 lakh, covering around 10,000 online sites and 75,000 physical stores across India. While the BNPL segment in India is becoming increasingly crowded, ZestMoney’s focus on customer acquisition through merchants has given them a competitive edge. This approach ensures that ZestMoney understands its customers and their purchasing behaviours. As per Redseer, India’s BNPL market is projected to grow to $45-50 billion by 2026, up from $3-3.5 billion currently. The number of users is expected to surge to 80-100 million customers by 2026, from the current 10-15 million.

While ZestMoney has successfully entered the BNPL segment in India, Chapman anticipates intensified competition as more players venture into this space. However, her unique perspective and understanding of the Indian market have allowed her to make a significant impact, especially among millennial and Gen-Z consumers. Srinath Sridharan, an expert in the banking and financial services industry, acknowledges Lizzie’s achievements and ability to build a distinct product that appeals to the younger demographic. He believes that Lizzie’s foreign perspective has enabled her to successfully crack the market.