Investment made by a Japanese company in fintech business Zype during Series B funding round
Zype Secures Rs 90 Crore in Series B Funding for Digital Lending Expansion
Fintech startup Zype, an AI-led digital lending platform focused on salaried individuals, has raised Rs 90 crore (approximately $10.2 million) in Series B funding, led by Japanese venture capital firm UNLEASH Capital Partners.
This funding round is aimed at expanding Zype’s market presence and product capabilities, with particular emphasis on leveraging AI technologies to enhance their lending platform. The fresh capital will support growth by scaling operations and deepening AI integration to improve credit decisioning and customer experience.
Homegrown private equity firm Xponentia Capital also participated in the funding round. UNLEASH Capital Partners' India-focused fund backs startups in the financial sector, and Xponentia Capital has previously invested in Zype, leading a Series A round in 2022.
Since its inception, Zype has disbursed over Rs 1,300 crore in loans and claims to have reached profitability within two years of starting operations. The company has a registered user base of over 8 million users, and it has disbursed loans to over 3 lakh customers. Zype offers a credit-led financial platform for salaried individuals.
The lead investor, UNLEASH Capital Partners, is a Japanese VC firm known for backing AI-powered fintech startups, indicating strategic support for AI-driven growth. Xponentia Capital has also invested in various sectors like education, consumer goods, and other fintech startups like Auxilo, Traya (a hair care brand), and The Souled Store.
The funds raised will be used to accelerate Zype’s product expansion in the digital lending space, maintaining focus on salaried users. AI integration plays a central role, as the platform uses AI-driven tools to deliver faster, smarter lending solutions tailored to salaried borrowers. The company plans to use this capital to strengthen its technology infrastructure, build out teams, and expand geographically.
No specific product features or roadmap details have been publicly disclosed, but the emphasis on AI and digital lending scale-up suggests a focus on data-driven lending decisioning, automation, and potentially new credit products targeted at salaried individuals.
In addition, Xponentia Capital has promoted executives to Managing Directors, and the firm continues to seek opportunities to invest in promising startups across various sectors.
In conclusion, Zype’s Series B funding primarily fuels its product expansion and AI integration efforts to accelerate growth and broaden its footprint in the digital lending market in India.
Investing in Zype's Series B funding round was the Japanese venture capital firm UNLEASH Capital Partners, known for their focus on AI-powered fintech startups, aligning with the company's plan to expand its product capabilities and market presence using AI technologies in digital lending. Furthermore, Zype aims to utilise this investment to strengthen its technology infrastructure, build out teams, and expand geographically, indicating that business growth and technology advancement are crucial components of its strategy for the future.
