Bengaluru-based ZestMoney is slashing about 20% of its group of workers, which can have an effect on just about 100 workers, as consistent with a LiveMint document. The purchase now, pay later platform’s talks of an acquisition via fintech corporate PhonePe had collapsed previous. Backed via Goldman Sachs and Xiaomi, ZestMoney these days employs round 450 other people.
The department-wide layoff, introduced as a part of its industry continuity and survival plan, comes weeks after PhonePe halted the $200 – $300 million acquisition deal on the finish of March 2023. The talks, which started in November 2022, fell via owing to lapses. due diligence, war of words over valuation, shareholding construction and a slowdown within the monetary era sector, a Business Insider document said.
ZestMoney was once based in 2015 via Lizzie Chapman, Priya Sharma and Ashish Anantharaman. The corporate raised its closing investment spherical at a $450 million valuation and has up to now been in acquisition talks with Pine Labs and BharatPe.
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According to a Moneycontrol document, the corporate’s severance bundle features a month’s wage which has provision for insurance coverage, psychological well being help and different perks. The Walmart-backed PhonePe might also rent a lot of employees from ZestMoney, the document added.
The acquisition deal, if a success, would have enhanced its aggressive place within the fintech marketplace and marked its foray into virtual lending.
Layoffs have affected the edtech sector too as Unacademy lately laid off 12 consistent with cent of its workforce or about 380 workers. It is the unicorn’s fourth spherical of layoffs prior to now 12 months to strengthen core industry profitability. Co-founder and CEO Gaurav Munjal additionally introduced that the highest management will take a ‘everlasting’ pay reduce of as much as 25 consistent with cent.