Indian fintech startup ZestMoney's three founders, Lizzie Chapman, Priya Sharma, and Ashish Anatharaman, resigned from their posts.
The founders took the decision after its deal to be acquired by PhonePe fell through. Chapman addressed the news through an internal email seen by TechCrunch, adding, "We will also ensure to provide full support to the incoming management team and do everything we can to support them for the next four months to ensure a smooth transition."
- Reportedly, the firm had nearly exhausted its cash reserves and was banking on the PhonePe acquisition deal to ensure sustainability.
- The firm was unable to raise additional funding as investors reduced their investments in late-stage startups.
- ZestMoney had raised $130M from investors, including Goldman Sachs, Ribbit Capital, Quona, PayU, Xiaomi, and Alteria Capital.
- It was last valued at $445M in its previous equity round.
- Last month, the firm laid off 100 employees to curb expenses.