According to numerous media reports on Tuesday, ZestMoney, a well-known Buy Now, Pay Later (BNPL) firm that was previously valued at $450 million, is allegedly closing this month and terminating its remaining 150 employees.
A brief about this month, ZestMoney will close and lay off its 150 surviving employees
The inability of ZestMoney 2.0 to gain traction under new management and regulatory uncertainty have been cited as the reasons for the decision.
The management allegedly told staff members during a town hall meeting on Tuesday about the decision to shut down operations and fire the remaining 150 workers.
ZestMoney, which had once claimed to have 500 employees, encountered difficulties owing to regulatory uncertainty and issues putting its altered plan into practice under new leadership.
Early in 2023, ZestMoney’s problems started when PhonePe, a fintech company controlled by Walmart, decided to scrap its proposed acquisition of the Bengaluru-based startup.
During due diligence, the deal—which was first estimated to be worth between $200 million and $300 million—came across challenges, including differences over valuation and a high default rate (about 10–12%).
