Goldman Sachs-backed ZestMoney, once valued at $450M, to shut down

Trending 5 months ago

ZestMoney, a bargain now, salary later startup whose expertise to underwrite mini summons loans to first-time net customers attracted galore high-profile investors, including Goldman Sachs, is shutting down pursuing unsuccessful efforts to find a buyer.

The Bengaluru-headquartered startup — which besides identified PayU, Quona, Zip, Omidyar Network and Ribbit Capital among its backers — employed astir 150 group and had raised complete $130 cardinal successful its eight-year journey.

The startup’s caller leadership, which informed nan labor astir nan determination to unopen down Tuesday, didn’t respond to a petition for comment. The startup will afloat upwind down by nan extremity of nan month, nan activity said.

The move follows ZestMoney founders quitting nan startup successful May this year aft acquisition talks pinch fintech elephantine PhonePe didn’t materialize. The founding squad handed complete nan patient to 3 caller leaders, who raised a fewer cardinal dollars from existing investors and attempted to find a caller way for nan company.

They engaged pinch galore investors and fintech giants successful caller months to research deals, group acquainted pinch nan matter said.

ZestMoney, erstwhile valued astatine $445 million, was among a fistful of Indian startups that utilized replacement information points to thief build in installments profiles connected consumers, making them eligible to make their first online purchases.

India’s debased in installments paper penetration has near a mostly of nan organization without accepted in installments scores, which banks trust connected to measure creditworthiness earlier issuing loans. Furthermore, mini loans do not output important returns for banks, disincentivizing them from issuing specified financial products. In response, ZestMoney, alongside different emerging startups for illustration Axio and LazyPay, has attempted to carve retired a niche successful a marketplace traditionally dominated by financial elephantine Bajaj Finance.

Tuesday’s news is nan 2nd rustle for Omidyar Network this week. Omidyar-backed Doubtnut — which had raised complete $50 cardinal and erstwhile received a $150 cardinal acquisition woody — agreed to waste for $10 million, TechCrunch reported Monday.

Source Technology