Beleaguered fintech ZestMoney, which has scaled down its daily operations, posted a widening in revenue and losses for FY23.
The Bengaluru-based startup's revenue from operations rose to Rs 243.7 crore from Rs 138.5 crore. Its loss widened to Rs 412.5 crore in FY23 from Rs 398.8 crore, according to filings sourced from PrivateCircle Research. With this, the company's accumulated losses increased to Rs 1,243 crore.
The improvement in the firm's net profit ratio came due to higher disbursals and controlled expenses due to cost optimisation measures, it said in its filings.
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"There have been certain delays in the payment of dues by the company to its lenders and other creditors. In view of the significant losses incurred... the company's ability to meet its obligations and continue its operations over the foreseeable future is significantly dependent upon raising further capital and improving its operations," the company added in its notes in the filings.
As of March 31, 2023, the company had raised Rs 39.3 crore from its holding company and had a binding term sheet available for further funding of up to $5 million from existing investors. It was also in discussion with potential investors for a strategic investment along with a lending partnership to enhance the company's business operations.
In December, several reports said that ZestMoney, which popularised the 'buy now, pay later' product, will shut down by the end of 2023 after failing to secure funds or find a buyer. The company hasn't yet formally responded to these reports.
The development came roughly six months after ZestMoney's three co-founders and key executives stepped down from their daily duties at the startup, months after a failed acquisition deal with PhonePe.
Founded in Bengaluru in 2015, ZestMoney raised close to $130 million across its lifetime and accrued as many as 1.7 crore registered users, it said.
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