Zype Secures $10.2 Million in Series B Funding to Expand Fintech Services
The Mumbai-based fintech startup, Zype, has successfully raised ₹90 crore (approximately $10.2 million) in its Series B funding round. This funding was led by the Japanese venture capital firm, UNLEASH Capital Partners, with participation from local investment company, Xponentia Capital.
Zype plans to utilize the newly acquired capital to enhance its product offerings. The CEO of Zype, Yogi Sadana, expressed confidence in the funding, stating, “This new capital reinforces our mission to become a trusted credit platform for India’s emerging middle class.” He emphasized the company’s focus on delivering innovative credit solutions while maintaining profitability.
With the Series B funding, Zype aims to scale its loan and payment solutions while prioritizing responsible growth, operational efficiency, and high corporate governance standards. Sadana highlighted that the company has achieved profitability even at its current scale and is looking forward to expanding its range of financial products.
Founded in 2022, Zype provides a credit-led financial platform tailored to meet the urgent financial needs of employees. The startup has already established a user base of over 8 million individuals and has distributed loans to more than 300,000 customers, particularly in smaller towns and cities across India.
Xponentia Capital, an early investor, had previously backed Zype in its second fund during the startup’s stealth phase in 2022, leading to an investment of ₹146 crore (almost $18 million at that time). Perumal Srinivasan, a management partner at Xponentia Capital, praised Zype for its disciplined execution and ethical approach to credit, which has led to sustainable growth.
Since its inception, Zype has successfully maintained profitability by effectively utilizing less than 15% of the capital raised to build its company, with the remainder directed toward developing its loan book. This strategic approach has allowed Zype to flourish, establishing a strong operational and strategic framework within just two years.
Natsuki Sugai, co-founder and general partner at UNLEASH Capital Partners, remarked on Zype’s disciplined strategy and ability to achieve profitability swiftly. He noted that the company’s learning from prior market participants positioned it advantageously for growth and development in the competitive fintech landscape.
UNLEASH Capital Partners operates a ₹300 crore fund focused on supporting startups in the financial sector, adding Zype to its growing portfolio, which includes other notable companies like Ayekart and Credresolave.