ZestMoney, a leading Indian fintech company providing digital consumer lending services, is set to lay off around 100 employees, which accounts for nearly 20% of its workforce, as part of a business continuity plan. This move comes after ZestMoney’s deal with PhonePe, a leading digital payments company, failed to materialize. According to reports, ZestMoney had planned to partner with PhonePe to launch a new buy-now-pay-later (BNPL) product, which would allow consumers to buy products on credit and repay the amount over a certain period of time. The contract, however, is said to have fallen through due to differences over terms and circumstances.
As a result of the deal collapse, ZestMoney has been forced to revise its growth strategy and streamline its operations. The company has decided to focus on its core business of digital consumer lending while scaling down its BNPL business. In addition to the layoffs, ZestMoney is also reportedly planning to reduce its marketing and advertising expenses. ZestMoney has stated that it is taking all necessary steps to support the impacted employees during this difficult time.
The company is reportedly providing affected employees with outplacement services, job search assistance, and financial support.This move comes at a time when the Indian fintech industry is experiencing rapid growth, fueled by the increasing adoption of digital payments and the rise of digital lending platforms. However, the industry is also facing intense competition and regulatory challenges, which has led to consolidation and layoffs in some segments.
In conclusion, ZestMoney’s decision to lay off around 100 employees is part of its business continuity plan, following the collapse of its deal with PhonePe. The move highlights the challenges faced by the Indian fintech industry, even as it continues to grow at a rapid pace.
