Zype, a Mumbai-based digital lending platform, has raised INR 90 crore in its latest funding round, backed by Xponentia Capital and Unleash Capital Partners. This fresh capital will power Zype’s growth in India’s tier-II and tier-III cities, aiming to make credit accessible to millions of emerging customers.
Equity and Debt, Now Fully Converted
This round was structured as a mix of INR 56 crore equity and INR 34 crore debt. The company’s board has now converted the debt portion into equity, reflecting confidence in Zype’s business model. Major investors include Xponentia Capital with INR 36 crore, Unleash Capital at INR 17 crore, and angel investor Tejinder Singh Hara with INR 2.4 crore.
Rapid Growth Since Launch
Zype was founded in 2022 by Yogi Sadana, who set out to provide instant credit and financial wellness solutions to young, salaried professionals across India. The platform secured its NBFC license in 2023, allowing it to offer small personal loans for home renovations, medical emergencies, weddings, and education.
So far, Zype has raised a total of INR 236 crore since inception. It has disbursed loans of nearly INR 1,300 crore to more than 3 lakh Indians, building a registered user base of over 8 million. Its current annual loan disbursement run rate exceeds INR 1,200 crore. Zype boasts an assets-under-management figure of INR 400 crore and is operating at an annual recurring revenue of INR 150 crore. The startup achieved break-even in the last quarter of FY25 and expects to report profits in FY26.
Mission: Affordable Credit for All
Yogi Sadana, founder and CEO, stated that the latest funds will fuel product expansion focused on tier-II and tier-III markets. Zype’s goal is to empower India’s emerging middle class with easy access to fair credit while maintaining responsible lending practices. The company is strengthening its technology, expanding its team, and leveraging artificial intelligence to enhance efficiency and risk management.
Indian Fintech Outlook: Investor Confidence High
Despite a slight slowdown in overall fintech sector funding in 2025, investor confidence in lending platforms like Zype remains robust. Early-stage and mid-growth startups saw renewed interest. Notably, proven models and platforms with strong governance have attracted more capital this year, signaling a shift in investor mindset.
What’s Next for Zype?
With significant funding in hand and strong investor backing, Zype is well-positioned to scale up and launch new financial products for India’s young workforce. The company remains committed to responsible growth, building trust, and improving the financial well-being of millions.