Zestmoney has laid off 20 per cent of its workforce after the acquisition deal with fintech major PhonePe was called off.
According to sources who spoke to businessline on the condition of anonymity, Zestmoney is now looking to raise funds from existing investors. The Buy Now Pay Later (BNPL) start-up is also planning to restructure the business to achieve profitability in the next few months and maintain a lean workforce.
Moneycontrol was the first to report this development,.
Also read: Shriram Finance’s Jubilee deposits offer 8.5%: Should you invest?
Zestmoney had not responded to businessline’s queries by the time of publishing this news.
According to Linkedin, Zestmoney has around 200-500 employees before the layoffs. As of October, Zestmoney had a network of over 10,000 online partners and 75,000 physical stores. Zestmoney has a registered user base of 17 million and is live at 85,000 retail touchpoints across India.
PhonePe was in talks to acquire Zestmoney for $200-$300 million last year. PhonePe later decided to not go ahead with the deal as the business due diligence of Zestmoney did not meet its required standards.