Fintech startup Zype has secured Rs 90 crore ($10.2 million) in a Series B funding round led by Japanese early-stage venture capital firm UNLEASH Capital Partners, with participation from homegrown private equity firm Xponentia Capital.
The Mumbai-based company said it will use the capital to expand its product suite.
“This fresh capital reinforces our mission to be a trusted customer-first credit platform for India’s emerging middle-class” said Yogi Sadana, CEO of Zype. “We are building an extremely credit-focused new-age lending business and, even at our current scale, we have been fully profitable. This capital raise is entirely for our future growth as we enter into newer product lines.”
Sadana added that the company plans to broaden its lending and payment solutions, harness AI to improve operations and scale responsibly, while maintaining profitability, robust risk discipline, and high corporate governance standards.
Founded in 2022 by Sadana, Zype offers a credit-led financial platform for salaried individuals, supporting their urgent financial needs.
Xponentia Capital had earlier invested in Zype from its second fund in 2022, when the startup was still in stealth mode, leading a Rs 146 crore (nearly $18 million then) Series A round.
“Zype’s disciplined execution and credit-first ethos have translated into sustainable and profitable growth. Less than 15% of the raised capital was used for building the business–the remaining capital has been leveraged to build a lending book, enabling the business to become fully profitable,” said Perumal Srinivasan, managing partner at Xponentia Capital.
Zype claims to have a registered user base of over 8 million users and has disbursed loans to over 3 lakh customers, many of whom are based in smaller cities and towns. Since its inception, the company has disbursed over Rs 1,300 crore in loans and claims to have reached profitability within two years of starting operations.
“As a thoughtful late entrant to the market, Zype has leveraged learnings from incumbents to chart a disciplined path—achieving profitability in under two years and assembling a formidable operational and strategic team,” said Natsuki Sugai, founder and managing partner at UNLEASH Capital Partners.
UNLEASH is investing from its Rs 300 crore India-focused fund, which backs startups in the financial sector. It also counts Ayekart and CredResolve among its portfolio companies.
