ZestMoney, a startup started seven years ago offering pay later, Buy now services, is on the verge of being shut down. The company's management on December 05 informed its employees that its operations would be closed soon.
With the announcement, the jobs of more than 150 employees working in a fintech company are in danger.
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As per Economics Times, ZestMoney employees were aware of something unfavorable. But they never thought that the company would be closed. Following the development, the employees have started looking for jobs.
ZestMoney employees would get 2 months' Salary
The company is going to pay two months' salary to the employees. However, employees say they may have to wait a long time for this. The company did perfect business in the initial years. However, after the departure of the founders, it faced continuous losses.
PhonePe was interested in acquiring ZestMoney
Earlier, ZestMoney's founders stepped down and after the departure of the founders, the management took over the charge. The management could not handle the company's operations. Just a year ago, PhonePe was about to acquire ZestMoney. But things did not work out between the two and the deal could not be done.
Why ZestMoney is about to close?
In June this year, The Reserve Bank of India issued a notification to ban credit line load through PPI i.e. prepaid payment instruments, prepaid cards, and wallets for fintech companies and non-banking institutions. The move impacted severely on Pay Later, Buy Now facilities.