Amid Restructuring Effort, US-Based BNPL Startup: Sezzle shuts India Operations
- ByStartupStory | April 9, 2022
Sezzle, the U.S.-based buy-now-pay-later (BNPL) startup, has informed its merchants in India about shutting down operations in the country from April 9.
Sezzle has requested all its merchants to deactivate the service from their respective websites at the earliest, coming as part of a restructuring plan in line with its parent company, as per a report that reviewed the fintech firm’s notice to its merchants.
However, according to the media report, Sezzle also told its clients that until May 9 as part of providing after-services, it would continue to provide shopper support and merchant support.
As per the company’s website, in India, Sezzle has a partnership with brands across segments and the names include Titan, Noise, Fastrack, Sonata, Plum, and Kama Ayurveda.
Australian BNPL firm Zip announced the acquisition of its rival Sezzle, listed on the Australian Securities Exchange, valuing the company at A$491 Mn, which translated to $355 Mn on the day of the announcement, in an all-shares deal in February this year. By October end, the deal is expected to close.
Interestingly, in India Zip has also invested. In September last year, reports said that in order to acquire a minority interest in Bengaluru-based ZestMoney, Zip would invest $50 Mn.
In August 2020 Sezzle entered India and as a surprise to many this sudden exit came. Reportedly, Vandhan Parkavi, Sezzle’s country head for India, had told in November that to add more merchants to its platform has been planned by it.
Last month in North America, Sezzle also announced 20% job cuts. In less than a year, the company has also lost over 80% of its market value.
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