One of India’s leading digital financing companies ZestMoney has witnessed a stunning fall from being valued at over Rs 3200 crore just a couple of years ago. The Goldman Sachs, Omidyar Network and PayU-backed firm is closing down after failing to find a buyer despite many attempts. The downturn for ZestMoney began after its founders exited and a failed takeover deal with PhonePe earlier in 2023.
Just last year, ZestMoney boasted a vast channel network of 75,000 physical outlets and over 10,000 partners online. The company raised an estimated Rs 1000 crore (over $130 million) during its lifetime. It had around 1 crore 70 lakh users. At its peak, it was valued at $435 million (over Rs 3200 crore at the time) in September 2021. Its investors included Goldman Sachs, PayU, Xiaomi, Omidyar Network, Alteria Capital and Ribbit Capital.
ZestMoney was founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015. The company’s business soared during the Covid-19 pandemic as its transactions increased by 300 percent from 2020 to 2021. However, its losses increased from Rs 125.8 crore in FY2021 to Rs 398.8 crore in FY2022.
The founders exited the company in May 2023 after failing to infuse more capital in the company. ZestMoney’s new leadership reportedly informed the firm’s workforce about the decision to close the company on Tuesday. There has been no official communication from the firm as yet. It had earlier laid off 100 employees and will now lay off the remaining 150 staff.
