Zype Raises Rs 90 Cr Series B to Expand AI-Led Digital Lending

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Zype, an AI-driven digital lending platform for salaried individuals, has raised Rs 90 crore in Series B funding led by UNLEASH Capital Partners, with participation from Xponentia Capital, to expand its services, particularly in Tier II & III cities.

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Zype, an AI-led digital lending platform catering primarily to salaried individuals, has successfully raised Rs 90 crore in Series B equity funding. This latest round was spearheaded by the Japanese venture capital firm UNLEASH Capital Partners, with participation from existing investor Xponentia Capital. The transaction was exclusively advised by Unitus Capital.

The infusion of Rs 90 crore will empower Zype to diversify its credit and payments product suite, enhance its presence in Tier II and Tier III cities, and strengthen its sustainable, profit-driven lending model. The new funding aligns with Zype’s vision to emerge as a trusted, customer-first credit platform for India’s growing middle class, particularly young salaried individuals in smaller towns.

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“This fresh capital reinforces our mission to be a trusted customer-first credit platform for India’s emerging middle class,” said Yogi Sadana, Founder and CEO of Zype. “We will broaden our lending and payment solutions, harness AI to continuously improve our operations and scale responsibly—all while maintaining profitability, robust risk discipline and high corporate governance standards.”

Founded in 2023, Zype has exhibited remarkable growth and operational efficiency in a short span. It has become profitable within two years of operations, now serving a user base of 8 million with over 3 lakh active borrowers. The platform’s annual loan disbursal run-rate exceeds Rs 1,200 crore, having cumulatively disbursed more than Rs 1,300 crore to date.

By positioning itself as a responsible lender focused on urgent financial needs of salaried individuals in smaller towns, Zype fills a critical gap in India’s emerging credit market.

Natsuki Sugai, Founder and Managing Partner at UNLEASH Capital Partners, commented, “As a thoughtful late entrant to the market, Zype has leveraged learnings from incumbents to chart a disciplined path—achieving profitability in under two years and assembling a formidable operational and strategic team.”

This Series B round marks Zype’s second institutional capital raise after securing Rs 146 crore in Series A funding from Xponentia Capital. The company follows a high capital efficiency model, using less than 15% of raised capital for business expansion activities and the majority for building a strong lending book.

Perumal Srinivasan, Managing Partner at Xponentia Capital, emphasized, “Zype’s disciplined execution and credit-first ethos have translated into sustainable and profitable growth. The capital leverage strategy positions the business for long-term success.”

Looking ahead, Zype plans to launch new product lines to meet evolving customer needs. CEO Yogi Sadana indicated that the recent capital injection is dedicated entirely to fueling future growth, hinting at upcoming announcements for expanded lending and payment solutions.

“This capital raise is entirely for our future growth as we enter into newer product lines. You will soon see us announcing something big,” Sadana remarked.

Why Zype’s AI-Driven Lending Model Matters:
– AI Integration: By leveraging artificial intelligence, Zype enhances underwriting accuracy, risk assessment, and customer experience.
– Focus on Salaried Individuals: Targeting salaried employees in smaller towns addresses a largely underserved demographic.
– Profitability & Governance: The company balances growth with robust governance, aiming for sustainable profits rather than just scale.
– Tier II & III Focus: Expanding into smaller cities enables greater financial inclusion beyond metro areas.

Zype’s Rs 90 crore Series B funding round led by UNLEASH Capital Partners is a testament to the growing investor confidence in AI-driven, responsible lending platforms catering to India’s salaried middle class. With impressive milestones, strategic capital deployment, and ambitious growth plans, Zype is set to deepen financial inclusion across Tier II and Tier III cities while maintaining a disciplined, profit-first approach.

This new phase of growth will likely bring innovative credit and payment products, supporting millions of young Indians in managing their financial needs conveniently and responsibly.

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