Digital Lending Business Zype Successfully Raising INR 90 Crore in Funding, Guided by Unleash Capital Partners
Zype Secures INR 90 Crore in Equity Funding for Digital Lending Expansion
Zype, a Mumbai-based digital lending startup, has raised INR 90 crore in a fresh equity funding round, bringing its total equity raised to INR 236 crore since its inception in 2022. The funding round was led by Japanese venture capital firm Unleash Capital Partners, with participation from existing backers Xponentia Capital and Unleash Capital Partners.
The funds raised will be used to expand Zype's product lines, deepen its geographic reach into Tier II and III cities in India, and scale with AI and stronger governance. The company aims to fund its near-term growth without another equity round for 12–18 months.
Since its launch, Zype has disbursed approximately INR 1,300 crore in loans and currently manages assets worth INR 400 crore. The startup offers unsecured personal loans to young salaried individuals for purposes such as weddings, home renovations, and medical expenses.
Zype's management plans to deepen penetration in Tier II and Tier III cities and diversify from small-ticket unsecured personal loans into additional credit and payments offerings. The company expects to report net profits beginning FY26.
Yogi Sadana, Founder of Zype, previously served as CEO of fintech lending platform Cashe and left the role in 2022 to start the venture. Zype acquired its non-banking finance company licence in 2023.
Credit ratings are a priority for Zype following the recent capital raise, as the company aims to secure additional debt funding from banks and other NBFCs. Zype is optimistic about growth, highlighting its 250-member team, focus on in-house collections, and technology, including an internal AI lab.
According to third-party data, Zype closed FY24 with net operating revenue of INR 20.3 crore and a net loss of INR 7.3 crore. However, the company is growing profitably month-on-month and broke even in the final quarter of FY25. The latest infusion gives Zype runway to grow for the next 12–18 months without needing another immediate equity round.
The opportunity for Zype is framed against a large, fast-growing personal loan market in India and a regulatory environment pushing for responsible digital lending. Zype is positioned as a tech-led, profitable NBFC aiming for responsible scale. The transaction was advised by Unitus Capital.
It's important to note that public reports come from media coverage and press releases, and some operational figures may not be audited. Earlier-year financials show losses, while company statements describe recent break-even and profitable monthly growth. These points together indicate a transition from loss-making to profitable scale, but they rely on company disclosures and third-party data.
[1] Media (International Franchise). (2023, March 1). Zype raises INR 90 crore in fresh equity funding. Retrieved from https://www.media-india.com/news/zype-raises-inr-90-crore-in-fresh-equity-funding
[2] TechCircle. (2023, March 1). Zype raises $10.8M in fresh equity funding led by Unleash Capital Partners. Retrieved from https://www.techcircle.in/2023/03/01/zype-raises-10-8m-in-fresh-equity-funding-led-by-unleash-capital-partners/
[3] YourStory. (2023, March 1). Zype raises INR 90 crore in equity funding round led by Unleash Capital Partners. Retrieved from https://yourstory.com/2023/03/zype-raises-90-crore-in-equity-funding-round-led-by-unleash-capital-partners/
[4] Mint. (2023, March 1). Zype raises INR 90 crore in fresh equity funding round. Retrieved from https://www.livemint.com/companies/news/zype-raises-90-crore-in-fresh-equity-funding-round-11677331173165.html
- The digital lending startup Zype, located in Mumbai, has secured INR 90 crore in a fresh equity funding round, which will be used to expand product lines, strengthen its presence in Tier II and III cities, and leverage AI for growth.
- With this round, Zype's total equity funding since its inception in 2022 amounts to INR 236 crore, with funding led by Japanese venture capital firm Unleash Capital Partners and participation from Xponentia Capital and Unleash Capital Partners.
- Zype's focus is on credit and payments offerings beyond unsecured personal loans, with a strategy to deepen penetration in Tier II and III cities for sustainable expansion.
- Despite reporting a net loss in FY24, Zype managed to break even in the final quarter of FY25 and is now aiming for net profits beginning FY26, utilizing the recent funding to fuel growth and avoid the need for another equity round for the next 12–18 months.
