Fintech startup Zype has recently secured funding of INR 90 Cr, with INR 34 Cr initially raised as debt. Founder and CEO Yogi Sadana said that this debt portion has now been converted into equity.
Sadana explained that the fresh capital will be utilised to expand the company’s product portfolio, particularly targeting Tier II and Tier III cities. Including this round, Zype has raised a total of INR 236 Cr since its inception.
To date, the company has disbursed loans worth approximately INR 1,300 Cr to its customers. The board has approved the issuance of 61.5 Lakh equity shares at an issue price of INR 90.9, enabling the startup to raise INR 56 Cr from Unleash Capital Partners, Xponentia Capital Partners, and angel investor Tejinder Singh Hara.
In addition, the board approved raising INR 34 Cr in debt funding from Xponentia Capital Partners by issuing up to 34K non-convertible debentures (NCDs), each with a face value of INR 10K. Out of the INR 56 Cr equity funding, Xponentia is contributing INR 36 Cr, while Unleash and Singh are investing INR 17 Cr and INR 2.4 Cr, respectively.
Founded in 2022, Zype is a credit-first financial well-being and lifestyle application that enables users to access instant credit. The company obtained its non-banking financial company (NBFC) licence in 2023 and focuses on improving credit accessibility for millennials while promoting sustainable financial habits.
Previously, Zype raised INR 146 Cr in a round led by Xponentia Capital to enhance its technology platform, grow its team, and acquire more customers.
The latest development comes amid a surge in investor interest in fintech ventures, driven by expanding market opportunities. Fintech startups collectively raised $1.6 Bn across 68 deals in the first half of this year—a 56% jump from $1.1 Bn across 84 deals in the same period last year. Sequentially, funding increased 7% from $1.5 Bn in H2 2024.
This surge in capital flow has been fuelled by strong growth and late-stage deals, reflecting investor preference for established business models over experimental ones. Notable transactions include neobanking startup Zolve’s $251 Mn fundraise in March and Groww’s $202 Mn equity raise ahead of its IPO.
