Zestmoney laid off 20% of its workforce after its deal to acquire major financial technology company PhonePe was cancelled.
According to the source who spoke with business On the condition of anonymity, Zestmoney is currently looking to raise capital from existing investors. The Buy Now Pay Post (BNPL) start-up is also planning to restructure the business to make it profitable in the next few months and maintain a lean workforce.
Moneycontrol was the first to report this development.
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Zestmoney did not reply business query at the time of publication of this news.
According to Linkedin, Zestmoney had about 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 present at 85,000 retail touchpoints across India.
PhonePe negotiated to buy Zestmoney for $200-300 million last year. PhonePe then decided not to continue the deal because Zestmoney’s business due diligence does not meet the required standards.
