ZestMoney Faces Fiscal Challenges: Reports INR 412 Cr Loss in FY23

Navigating Turbulence: ZestMoney’s Path to Financial Resilience


In a challenging fiscal year, troubled buy now, pay later (BNPL) startup ZestMoney has reported a net loss of INR 412.4 Cr for the financial year ending March 31, 2023. This marks a marginal increase of 3% from the loss of INR 398.8 Cr reported in the previous fiscal year 2021-22 (FY22). Despite the setback, ZestMoney saw a notable rise in operating revenue, climbing 76% to INR 243.7 Cr in FY23 from INR 138.4 Cr in the preceding fiscal year.

Financial Struggles:

ZestMoney’s financial woes come amidst a challenging economic landscape and the evolving dynamics of the fintech industry. The startup, which had initially planned to cease operations by the end of December 2023, has faced significant hurdles on its journey.

Operating Revenue Surge:

While the net loss is certainly a cause for concern, ZestMoney did experience a silver lining with its operating revenue. The company’s revenue from operations saw a substantial increase, rising by 76% to INR 243.7 Cr in FY23. This notable surge suggests that despite the financial challenges, ZestMoney’s core business operations witnessed growth during the fiscal year.

Costly Operations:

However, the road to revenue growth has not been without its costs. ZestMoney reportedly spent INR 2.7 to earn every rupee in FY23, highlighting the financial strain and operational challenges the startup faced. Such a high cost of operations underscores the need for a strategic reassessment of the company’s financial structure and operational efficiency.

Minimal Cash Reserves:

As of March 31, 2023, ZestMoney’s total cash and cash equivalent stood at a mere INR 49.6 Lakh. This minimal reserve raises concerns about the startup’s liquidity and its ability to weather future financial storms. It underscores the importance of robust financial management and strategic planning to navigate the uncertainties in the market.


ZestMoney’s financial performance in FY23 reflects the complex landscape of the fintech industry and the challenges faced by startups in the rapidly evolving BNPL sector. While the surge in operating revenue is a positive sign, the substantial net loss, high cost of operations, and minimal cash reserves indicate a need for comprehensive restructuring and strategic decision-making to ensure the sustainability and success of ZestMoney in the future. The coming months will likely be crucial for the company as it navigates these challenges and charts a course towards financial stability.

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