In a surprising turn of events, ZestMoney’s leadership trio – Lizzie Chapman, Priya Sharma, and Ashish Anantharaman, have tendered their resignations from their respective positions as CEO, CFO and COO, and CTO. This announcement comes in the wake of the unsuccessful acquisition bid by PhonePe, leaving the fintech startup in an uncertain state.
An internal email from Chapman confirmed the collective decision to step down, following weeks of contemplation. The co-founders’ departure has left close to 100 employees in a state of uncertainty about the company’s direction.
PhonePe’s initial plan to acquire ZestMoney for a sum between $200 Mn and $300 Mn was abandoned due to concerns about the quality of ZestMoney’s loan book. Following the stalled acquisition, PhonePe reportedly took control of ZestMoney’s tech assets and bad loans in exchange for an $18 Mn line of credit it had previously extended to the struggling lender.
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PhonePe’s absorption of ZestMoney’s assets was reportedly accompanied by a significant portion of its workforce. To date, around 150 employees have transitioned from ZestMoney to PhonePe, leaving only a handful remaining at the lending platform.
However, PhonePe’s founder, Sameer Nigam, has denied any takeover of ZestMoney’s assets, intellectual property, clients, or business. Nigam confirmed that while PhonePe had hired approximately 130 former employees, it had no plans for additional hires from the beleaguered startup.
The founders of ZestMoney pledged to support the incoming management team during the transition period, but the company’s future remains unclear. This news is based on an article from exchange4media.
