Buy Now, Pay Later Startup ZestMoney Winds Up Operations
A buy now, pay later startup, ZestMoney, which garnered investments from high-profile investors, including Goldman Sachs, has decided to wind up its operations as it failed to find a buyer. Supported by PayU, Quona, Zip, Omidyar Network, and Ribbit Capital, this Bengaluru-headquartered startup employed around 150 people and raised over $130 million in its eight-year tenure.
According to a communication made by the startup with its employees, it will shut down operations by the end of the month despite the new leadership”s attempt to generate funds from investors as well as explore deals with fintech giants. The founders of ZestMoney left the company in May following Phonepe”s failed takeover attempt.
Zestmoney was positioned among the prominent startups in the country with a valuation of $445 million, exploring a vast group of people who were ineligible to acquire credit card facilities, bank loans, and other financial products. Using alternative data points to build credit profiles helped the company lend to fresh online buyers.
Omdiyar was confronted with a double blow with the closure announcement by Zestmony, as earlier Doubtnut, with a valuation of $150 million, had agreed to sell itself for $10 million. Omdiyar Network had an exposure of $50 million to Doubtnet.
