ZestMoney Layoff: To cut 20% staff after deal with PhonePe collapsed

Goldman Sachs-backed ZestMoney announced that it will layoff close to 20% of its workforce. This has come weeks after its talks with PhonePe for a sale collapsed.

ZestMoney currently has about 450 employees. In a townhall event, the company made the announcement and said that the layoff is part of its business continuity and survival plan. The layoff will be done across departments.

As per MonerControl, the company has agreed to pay one month's salary as a severance pay along with other benefits like insurance and mental health assistance.

The RBI issued a notification that prevented the non-bank institutions from rom loading credit lines onto Prepaid Payment Instruments (PPI) such as wallets and prepaid cards last year. As per reports, this is a major factor for PhonePe to pull out from ZestMoney acquisition deal.

PhonePe is also looking to absorb as many as 200 employees of ZestMoney, reported MoneyControl.