ZestMoney

ZestMoney, a Goldman Sachs-backed Indian buy now, pay later fintech startup once valued at $450 million, is shutting down and laying off its entire workforce of approximately 150 employees. The closure, announced to staff in early December 2023, follows unsuccessful efforts to find a buyer or secure a new path after acquisition talks with PhonePe collapsed earlier in the year. The company, which had raised over $130 million, will wind down operations by the end of the month. This marks a significant failure in the competitive Indian consumer lending space, where ZestMoney aimed to serve first-time internet users with small-ticket loans.

ZestMoney, a Goldman Sachs-backed buy-now-pay-later (BNPL) fintech platform with around 450 employees, is planning significant layoffs across departments following the collapse of its acquisition deal with Walmart-backed PhonePe. The deal fell through in late March 2023, leaving the company in financial distress and forcing it to adopt a survival plan that includes workforce reductions. While the exact number of employees to be laid off is not yet specified, the founders have actively sought outplacement assistance for the impacted staff. The layoffs are a direct consequence of the failed acquisition, which has created an immediate liquidity crisis for the company.