Embattled Australian buy now, pay later provider Zip Co has shut down a money management app it paid $7.5 million to acquire, as it struggles to keep afloat.

Zip bought Pocketbook in 2016, and although the app has 800,000 users, it isn’t profitable.

“Zip’s operating environment has changed significantly in the last few months and as a result we have adapted our strategy accordingly in order to accelerate our path to global profitability,” said Zip’s chief product officer Travis Tyler.

“With this in mind, Zip has decided to close the Pocketbook app in order to reprioritise resources and focus on delivering sustainable profitability in our core ANZ market.”

Zip’s shares have plummeted more than 93 per cent in the past year, currently trading at 50c, a far cry from its May 2021 heights of $14.53.

Although Zip increased revenue by 89 per cent in the first half of 2022, it still recorded a $172.7 million loss.