Digital lending startup Zype raises Rs 90 Cr led by Unleash Capital

Digital lending startup Zype has raised Rs 90 crore (around $10.2 million) in a fresh funding round led by Japanese venture capital firm Unleash Capital Partners, with participation from existing investor Xponentia Capital. 

This takes the total equity raised by the Mumbai-based firm to Rs 236 crore since its inception in 2022. Unitus Capital acted as the exclusive advisor for the transaction.

Zype operates as a non-banking finance company (NBFC) since acquiring its licence in 2023. It offers unsecured personal loans to young salaried individuals for needs like weddings, home repairs, and health expenses. 

Competing with players like Fibe and Kreditbee, Zype claims to have disbursed Rs 1,300 crore in loans to date and manages an AUM of Rs 400 crore.

The startup is currently operating at an annual recurring revenue (ARR) run rate of Rs 150 crore and broke even in the last quarter of FY25. It expects to report net profits starting FY26. 

Zype aims to continue growing profitably while building its credit profile to raise additional debt from banks and NBFCs.