Exclusive: ZipLoan’s valuation surges to Rs 365 Cr in extended Series B round

Digital lending platform for micro, small and medium enterprises ZipLoan is raising another $3 million from existing backers Elevation Capital (previously SAIF Partners), Matrix Partners India, Waterbridge Ventures and Whiteboard Capital.

The fresh capital appears to be an extension of ZipLoan’s Series B round that was led by SAIF Partners in February 2019.

Elevation, Matrix, Waterbridge, Whiteboard along with the company’s co-founder Shalabh Singhal will collectively pour in around Rs 23.7 crore, shows regulatory filings. The Delhi-based five-year-old startup will allot 24,718 Series B1 CCPS at an issue price of Rs 9581.63 per share to raise the capital.

While Matrix and Elevation will invest Rs 8.5 crore each, Waterbridge and Singhal will pump in Rs 2.5 crore and Rs 3.7 crore, respectively. Whiteboard will also invest Rs 50 lakh in this round.

Launched by Singhal and Kshitij Puril, ZipLoan offers unsecured business loans in the range of Rs 1 lakh to Rs 7.5 lakh over a period of 1-3 years. According to the company it requires minimum documentation and a business should have a turnover of Rs 10 lakh and operational of at least 2 years to avail the loan.

ZipLoan is an NBFC licence holder and has partnered with lenders including IDFC First Bank, IndusInd Bank, and Northern Arc. It offers loans across 15 cities (majorly North India) and Bengaluru.

Following the fresh capital infusion, Matrix will remain as the single largest stakeholder in ZipLoan with 24.78% stake followed by Elevation Capital which holds 21.05% stake. Waterbridge, Whiteboard and Growx Projects will have 5.67%, 2.12% and 4.6% stake, respectively. Promoters of the company -- Singhal and Puri -- have 15.56% and 14.54% holding.

As per Fintrackr’s estimates, ZipLoan has been valued around  Rs 365 crore in this funding tranche. 

Over the past three-four years, the micro-business financing segment has been overcrowded with many platforms offering similar services. Notable platforms in the segment include Indifi, Aye Finance, Capital Float among several others.