ZestMoney, a Buy Now Pay Later (BNPL) startup, is shutting down its operations, affecting around 150 employees. The decision follows unsuccessful acquisition attempts by PhonePe, a larger peer, earlier this year. PhonePe's due diligence process did not meet its standards, leading to the deal's cancellation. Despite Walmart-owned PhonePe hiring some of ZestMoney's employees, the startup's co-founders stepped down, and a new leadership team was appointed. ZestMoney faced financial challenges, with losses increasing from Rs 125.83 crore in FY21 to about Rs 398.82 crore in FY22.