Homegrown digital EMI financing platform ZestMoney, with backing from Goldman Sachs, is reportedly shutting down its operations after unsuccessful attempts to find a buyer. The startup, valued at $445 million, had raised over $130 million from various investors, including Ribbit Capital, Omidyar Network, PayU, Xiaomi, and Alteria Capital. ZestMoney, which provided small loans to first-time internet customers through its buy now, pay later (BNPL) model, faced challenges despite its significant funding and valuation.
In May of the same year, the founders resigned as the startup struggled to secure fresh capital. The potential acquisition by fintech company PhonePe also fell through, contributing to the decision to wind down operations. ZestMoney had earlier laid off about 20% of its workforce, affecting nearly 100 employees. The company, headquartered in Bengaluru, reported a registered user base of 17 million and was active at 85,000 retail touchpoints across India. The shutdown is expected to be completed by the end of the month.
(With Agency Inputs)