Goldman Sachs-backed ZestMoney will lay off 100 employees, or about 20 per cent of its workforce, weeks after its talks with PhonePe for a sale fell through, according to a Moneycontrol report. It is part of the company’s business continuity and survival plan.
The founders and top leadership team of ZestMoney held a Townhall on April 6 to inform the layoffs to employees. The company had about 450 employees and is planning to lay off across departments.
“As part of its business continuity plan, the company is laying off 100 people. The company has promised to pay a month’s salary as severance and other benefits like insurance and mental health assistance,” said an employee on the condition of anonymity, according to the Moneycontrol report.
The report also said that Priya Sharma, co-founder of the BNPL platform, earlier also sent out a message to a few startups seeking help for outplacing ZestMoney employees.
Sources also said that PhonePe is looking to absorb as many as 200 employees from ZestMoney. “There are talks happening regarding hiring some talent from ZestMoney by PhonePe but nothing has been decided yet,” said a source close to the development.
Last week, fintech company PhonePe cancelled its plan to acquire ZestMoney. Fintech company PhonePe has cancelled its plan to acquire ZestMoney. This is a huge setback for the buy-now-pay-later company. In November last year, it was said that PhonePe will acquire ZestMoney in a deal pegged at $200 million-$300 million.
ZestMoney is a consumer lending fintech company in India founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015.
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