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ZestMoney collapse in a year raises alarms over fintech loan recovery and BNPL risk ahead
Business
Published on 24 April 2026
Valuation vanished fast, but lenders still face recovery questions
ZestMoney’s rapid downfall from a USD 440 million valuation within a year is spotlighting weak loan recovery across fintech lenders, especially those built on unsecured credit. The shakeout also raises tough questions for BNPL platforms that scaled quickly by extending loans without strong repayment performance, suggesting tighter scrutiny and funding headwinds ahead for the sector.
- ZestMoney’s swift collapse highlights stress in fintech credit models
- Poor loan recovery is emerging as a major industry concern
- BNPL growth on unsecured loans may face tighter scrutiny
- A sector-wide funding and risk reset could be underway
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times