ZestMoney deal failure rings alarm bells for BNPL players

PHONEPE SCRAPPED ACQUISITION OVER DUE DILIGENCE CONCERNS

PHONEPE PULLING THE plug on the ZestMoney deal has sent a bunch of fintech players, especially in the buy-now-pay-later (BNPL) space, into a tizzy, with some even opting for pre-diligence to avoid shocks later, stakeholders told FE.

The Bengaluru-based fintech decacorn last week did not proceed with its offer to acquire ZestMoney because the latter's due diligence did not meet PhonePe's standards, as reported earlier, leaving industry players confused about the practices followed at ZestMoney and the wider industry.