Japanese corporation invests in fintech company Zype during Series B funding round
Zype Secures $10.8 Million in Series B Funding for AI-Powered Lending Expansion
Fintech startup Zype, a Mumbai-based company offering a credit-led financial platform for salaried individuals, has secured Rs 90 crore ($10.2 million) in a Series B funding round. The funding round was led by Japanese early-stage venture capital firm UNLEASH Capital Partners, with participation from homegrown private equity firm Xponentia Capital.
Following the funding, Zype plans to aggressively and responsibly expand its AI-powered digital lending platform. The company aims to broaden its lending and payment solutions tailored for salaried individuals, particularly focusing on Tier 2 and Tier 3 markets in India.
Yogi Sadana, CEO of Zype, stated that the company will build an extremely credit-focused new-age lending business. The startup, which has already disbursed loans to over 3 lakh customers, will use the capital to expand its product suite, deepen its market presence, and continue investing in AI-powered operations.
Zype's growth strategy emphasizes measured, profitable growth, avoiding high cash burn, and maintaining a disciplined, credit-focused approach to build a high-quality lending book that promotes sustainable operations. The company broke even in the last quarter of FY25 and targets net profit from FY26 onwards.
The startup will also pursue credit ratings to facilitate access to credit lines from more banks and NBFCs to further fuel growth. Less than 15% of the raised funds will be used for building the business infrastructure; the remaining capital is allocated to expanding the lending book.
Natsuki Sugai, founder and managing partner at UNLEASH Capital Partners, believes Zype has charted a disciplined path. Perumal Srinivasan, managing partner at Xponentia Capital, praises Zype's disciplined execution and credit-first ethos.
UNLEASH Capital Partners counts Ayekart and CredResolve among its portfolio companies. Xponentia Capital had earlier invested in Zype from its second fund in 2022. Since its inception, Zype has disbursed over Rs 1,300 crore in loans, with the majority of its customers based in smaller cities and towns.
In summary, Zype’s Series B funding enables the startup to aggressively and responsibly expand its AI-powered digital lending platform, focusing on broadening product offerings and deepening its reach in emerging markets, while maintaining operational profitability and strong risk discipline.
The finance industry opportunities are appealing to Zype as they aim to invest in expanding their AI-powered digital lending platform, focusing on Tier 2 and Tier 3 markets in India. With the raised funds, Zype will continue to build a new-age lending business, focusing on deepening market presence, expanding their product suite, and increasing their lending and payment solutions for salaried individuals, particularly in emerging business sectors.
