Goldman Sachs-backed bangaluru based ZestMoney will lay off 100 employees or about 20 per cent of its workforce, after its talks fintech firm PhonePe for a sale fell through, according to news reports. The founders and top leadership team of ZestMoney held a Townhall on April 6 (Thursday) to inform the layoffs to employees. The company is planning to lay off across departments according to media reports.
ZestMoney, has nearly 450 employees, all of whom were expected to be absorbed by PhonePe if the acquisition had proceeded.
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However, ZestMoney didn’t respond when asked for a comment by several media platforms, whereas employees have confirmed this development. PhonePe is looking to absorb as many as 200 employees from ZestMoney.
PhonePe’s decision to pull out from the ZestMoney acquisition deal highlighted the stress in the BNPL sector that was hit by the Reserve Bank of India (RBI)’s crackdown on digital lending last year.
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