PhonePe has cancelled its plan to accumulate buy-now-pay-later (BNPL) platform ZestMoney over disagreement on valuation.
In a townhall immediately, ZestMoney knowledgeable its workers that the deal has been referred to as off, an individual conscious of the matter informed Mint.
In November, Mint reported that the valuation at which PhonePe was shopping for ZestMoney was someplace round $200-$300 million.
Nonetheless, in the course of the due diligence, the valuation went right down to as little as $40-$50 million “resulting from which the acquisition was referred to as off,” the individual added.
“Throughout due diligence, PhonePe found that ZestMoney’s mortgage ebook was fairly dangerous. Zest’s credit score losses have been 1.5x of their income numbers. Because of which, PhonePe was delaying and was prepared to pay manner lesser than what was anticipated…even lower than what Zest has raised thus far,” he mentioned.
ZestMoney raised its final funding spherical at a $450 million valuation. Until date, it has raised about $130 million.
ET was the primary to report in regards to the deal not occurring.
The BNPL startup was on the lookout for a purchaser for no less than a yr now because it has struggled to lift funding. ZestMoney was earlier in acquisition talks with Pine Labs and BharatPe, however these offers additionally fell by way of.
It is a growing story…
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Supply: Live Mint