ZestMoney Says New Funding Coming In A 'Few Weeks' After Founders Resign
"This new capital will support the future growth of the business and finance the path to profitability," the company said.
ZestMoney has said it is “finalising a funding round from existing shareholders", hours after the company’s founders confirmed they have handed in their resignations.
Participants in the round include Quona Capital, Zip, Omidyar Network India, Flourish VC and Scarlet Digital and is expected to close in the "next few weeks", according to a statement released by the company. "This new capital will support the future growth of the business and finance the path to profitability."
“The opportunity for ZestMoney remains massive,” said Peter Gray, global chief operating officer at Zip. "Less than 4% of Indians have credit cards or access to formal credit. India’s exploding population only points to more opportunity ahead, and we are excited about ZestMoney’s long-term potential."
In an announcement made earlier on Tuesday on LinkedIn, ZestMoney's Chief Executive Officer and Co-Founder Lizzie Chapman confirmed that she, along with fellow co-founders Priya Sharma and Ashish Anantharaman, have stepped down from their positions.
The founders will continue to be "significant shareholders in the company", she said. Chapman said the leadership baton will now be passed on to Vice President-Finance Mohit Chhajer, Chief Banking Officer Mandar Satpute, and Senior Vice President and Head-Growth Abhishek Sharma.
Goldman Sachs and PayU-backed ZestMoney's troubles began two months ago when PhonePe walked away from acquiring the company due to its failure to meet the required due diligence standards.
In April, as part of its survival plan, ZestMoney let go of around 20% of its workforce, or 100 employees.