Mumbai-based digital lending startup Zype has raised Rs 90 crore in a fresh funding round led by Japanese venture capital firm Unleash Capital Partners. Existing investor Xponentia Capital also participated in the round.
This round comes after the 2022-founded startup raised its first major institutional round of Rs 146 crore last year, thereby bringing the total equity raised to Rs 236 crore.
Unitus Capital was the exclusive advisor for the transaction, the company said in a statement.
Zype received a non-banking finance company (NBFC) licence in 2023 and, since then, has been disbursing loans from its books. Its current assets under management (AUM) stands at Rs 400 crore, and since its inception, it has disbursed Rs 1,300 crore.
Competing with the likes of Fibe and Kreditbee, Zype extends unsecured personal loans but only caters to young salaried consumers. Its borrowers have typically used Zype for wedding expenses, home repair, and health emergencies in their families.
“We have grown this business in a measured and profitable manner. With the new raise, we are good to grow for the next 12-18 months without the need for a fresh equity round,” said Yogi Sadana, founder, Zype. Sadana was previously the chief executive officer of fintech lending startup, Cashe.
He quit Cashe to start his own digital lending business in June 2022.
While the NBFC is not yet rated by credit rating agencies, Sadana said that with the new capital raise and some scale-up of business operations, he is looking to get ratings, which will help him source credit lines from more banks and NBFCs.
Currently, the startup is at an annual recurring revenue run rate of Rs 150 crore and is growing profitably month-on-month (MoM). Sadana said that while the startup did not report net profit for FY25, given that it broke even only in the last quarter, from FY26 the company will report net profit at the end of the year.
According to data from business intelligence platform Tracxn, Zype closed FY24 with a net operating revenue of Rs 20.3 crore and a net loss of Rs 7.3 crore.
This funding round comes at a time when consumer lending startups are trying to shake off the tough few months of November to February, when traditional lenders slowed down lending to fintech startups. With the interest rate cycle turning favourable and the festive season coming up, the sector is hopeful of good growth over the coming months. ET reported on August 5 that Fibe is looking to close a $35 million funding round from IFC.
Sadana is also hopeful of good business over the festival season, when consumption trends pick up, and the holiday season, when people tend to spend more.
