PhonePe calls off deal to acquire BNPL platform ZestMoney

After 3 months of discussions, PhonePe has referred to as the deal to accumulate buy-now-pay-later (BNPL) platform ZestMoney, a file on Thursday stated. The declaration of the equal will quickly be made to the personnel of ZestMoney.

According to a file via way of means of The Economic Times (ET) launched on Thursday, this may be a massive blow to ZestMoney whilst the arena struggles with a coins and investment crunch. A character privy to the improvement become quoted withinside the file as saying, "The deal is off, the employer forums and buyers had been made aware about the improvement over the previous couple of days...PhonePe isn't always going beforehand with the purchase after months of due diligence."

The principal motives the deal fell out had been lapses in due diligence, war of words over valuation, sustainability of the commercial enterprise and the platform`s shareholding structure. Reports additionally stated that ZestMoney's valuation of $200-three hundred million can also be a cause for the deal now no longer fructifying.

In September 2021, the employer raised $50 million from Zip and become looking forward to to raise $one hundred million more. But it couldn't move beforehand with the deal because of the worldwide slowdown.

Founded in 2015, Bengaluru and Mumbai-primarily based totally ZestMoney is sponsored via way of means of PayU, Ribbit Capital and Goldman Sachs. The BNPL platform focuses especially on large-price price tag transactions and checkout of diverse e-trade websites.