Inside PhonePe’s pay now buy later deal with ZestMoney

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Editor's note: 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 may take yet more time to consummate, even as one other executive directly aware of the matter insisted that talks are in its final stages.  A diverse range of factors has caused the holding up of the deal, according to these five executives, all of whom asked not to be named. First, PhonePe has more urgent matters at hand as the digital payments company is bringing its own house in order. It is closing its largest fundraise till date while …