Stealth mode fintech startup Zype raises over $17 Mn

New-age fintech platform Zype has raised Rs 146 crore ($17.6 million) in a new round led by Mumbai-based private equity fund Xponentia Capital. The round also saw participation from Vivek Vig, a BFSI sector veteran. 

Zype plans to deploy the funds for building its technology platform, expanding the team, and customer acquisition, the company said in a press release.

Zype, which is in stealth mode, is a credit-first financial well-being and lifestyle app. The startup aims to improve accessibility to credit for millennials and help them develop sustainable financial habits. It is likely to be launched for the masses by early next year.

According to Zype, the platform’s money management tools can help credit users manage their spending, receive bill reminders and make timely payments through the app. 

Zype will compete with MoneyTap, Fibe( previously EarlySalary), Uni, and KreditBee.

Fintech startups have managed to pool in large ticket-sized cheques even though the overall startup ecosystem is facing a funding crunch. Zype’s funding reflects that investors are bullish on its future prospects amid funding winter and layoff season.

Xponentia is a mid-market private equity firm with an AUM of more than Rs 1,000 crore. Its portfolio companies include Spot On, Barbeque Nation, Easy Home Finance, Altigreen, and R for Rabbit among others.