BNPL startup ZestMoney to shut down
ZestMoney, a buy now pay later startup, is shutting down due to
regulatory uncertainty and a failed attempt at revival.
The founders stepped down, leaving the firm in the hands of
investors and new management.
called off acquisition talks, leading to the company's decline.
ZestMoney's valuation was last at
The turnaround plan, ZestMoney 2.0, did not succeed, resulting
in the decision to wind down operations.
The company will let go of the remaining
retaining a skeletal legal and finance team for the shutdown process.
Employees have been promised two months of
severance payment and outplacement support.
RBI norms issued in June 2022 impacted the buy now pay later sector,
restricting credit lines on Prepaid Payment Instruments.
ZestMoney had been seeking a buyer since the failed acquisition by
In September 2022, ZestMoney raised
from Australian BNPL fintech Zip Co as part of a larger Series C fundraise.