Report: PhonePe Pulls Out Of The Acquisition Of ZestMoney

The Indian mobile payments company PhonePe, which is backed by Walmart, has decided not to buy BNPL player ZestMoney because of concerns about due diligence.

PhonePe turned down a deal worth between $200 million and $300 million, even though it would have given the company a license to be a non-banking finance company, something it has wanted for a long time.

The Economic Times quotes sources saying that PhonePe was worried about ZestMoney’s business model and debt liability, as well as the fact that India’s regulators are paying more attention to digital lenders.

ZestMoney was started in 2015, and at its last funding round, it was valued at $450 million. However, it has reportedly had trouble getting new funding and has been actively looking to sell.

PhonePe, on the other hand, got another $200 million from Walmart last month at a $12 billion valuation.