Inside PhonePe’s pay now buy later deal with ZestMoney

The deal has dragged on for more than three months. Both companies want it to go through, but valuation and complex shareholding remain stumbling blocks.

PhonePe’s negotiations to acquire ZestMoney have proven to be fascinating and complex in equal measures. Even as Walmart, PhonePe’s owner, is still conducting its due diligence on the acquisition, PhonePe has handed out a Rs 150 crore lifeline in form of a loan to ZestMoney to keep its operations intact.

While the initial expectations in November when The Economic Times first reported the talks were that a deal could be wrapped up quickly, the negotiations have entered a third month, and it has been over two months since the loan. According to four industry executives in the know, the deal …


Advait Palepu

Advait is a financial journalist and a former writer at The Morning Context. Here, he wrote on India’s banks, the wider financial services industry and the fintech ecosystem. He has previously worked with the Economic and Political Weekly, Business Standard, BloombergQuint and MediaNama, where he covered everything from the Reserve Bank of India to fintech policy.




Ashwin Manikandan

Ashwin writes on fintech and banking at The Morning Context. He joins us from The Economic Times, he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.