Embattled fintech Zip Co is cutting the number of products it offers and reviewing its overseas businesses for write-downs, as it looks to slow the rate at which it is burning through cash.

In a quarterly update on Thursday, Zip said it was taking action to move into profitability faster, after it dumped a plan to merge with rival Sezzle last week.

Valuations of buy now, pay later (BNPL) businesses have tumbled this year as investors dumped loss-making technology companies amid fears over rising bad debts and growing competition. Shares in Zip, the key local rival to Afterpay, are down almost 85 per cent so far this year.

Thursday’s update showed Zip’s results in Australia were in line with expectations, and the company said it was taking steps to reduce cash burn, adding that losses it had taken on bad loans in its core Australian business had peaked.

Revenue was flat for the June quarter compared with March, but up 27 per cent year-on-year, to $160.1 million. In its core Australian business, revenue grew 30 per cent year-on-year and net bad debts rose from 3.4 per cent to 3.82 per cent of accounts.

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As part of its bid to cut costs and focus on its core, Zip said it would close its Singapore business, and it would review the goodwill against its BNPL businesses in the United States, Europe and the Middle East.

It also said it was winding down key business lending products, it has closed a financial management app Pocketbook, and it had “deprioritised” the development of new products including in cryptocurrencies and investing.

Chief executive Larry Diamond said the company would now reach profitability - on its measure of earnings before tax, depreciation and amortisation - “earlier than anticipated.”