Jobaaj Stories
Bangalore based fintech ZestMoney is reportedly planning to sack 20% of it's workforce just days after it's deal with PhonePe failed to reach fruition.
ZestMoney is a BNPL fintech startup which was founded in 2015. The company allows customers to use products that they wish to buy, but pay for them in instalments over a period of time. The company has over 17 million customers and 85,000 retail touchpoints over India.
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The company has partnered with over 15,000 brands such as Beardo, Mi Home, Lee, Wrangler, Decathlon and many other major brands & offers it's services on Ixigo, Reliance Digital, Flipkart, Amazon, Myntra and several others.
In November 2022, PhonePe had announced that it was planning to acquire ZestMoney for a consideration of $200-300 million. This deal was expected to give PhonePe a position in the volatile BNPL market and access to a wide credit consumer base. Sources had suggested that the deal would be completed within 2-3 weeks at the time.
However, the deal was postponed as PhonePe carried out extensive due diligence into the company. Ultimately, on 30th March 2023, the deal was called off by PhonePe. The Walmart owned company cited valuation and NPA issues, which was a major blow to ZestMoney.
ZestMoney had not raised money since it's last round in September 2021. People had begun doubting the company's ability to continue as PhonePe acquisition would've been a major win for the BNPL startup.
According to sources, the company is currently actively looking for investors to raise funds as it is planning a business overhaul. It plans to restructure the business as the firing of 100 employees is part of it's business continuity plan.
- Aman Agarwal
