[Update] Zype Raises INR 90 Cr From Xponentia Capital

Update| August 09, 02:00 PM

Days after fintech startup Zype raised a funding of INR 90 Cr, which comprised INR 34 Cr as debt, its founder and chief executive Yogi Sadana today told Inc42 that the debt portion has been converted into equity.

On the utilisation of the capital, he further said that the proceeds will be deployed to expand the startup’s product portfolio in tier II and III cities.

Inclusive of the current round, the founder confirmed that Zype has raised INR 236 Cr since its inception.

So far, the fintech startup has disbursed loans of about INR 1,300 Cr to its customers.

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Original | August 06, 05:11 PM

Fintech startup Zype has raised INR 90 Cr ($10.3 Mn) in a mix of equity and debt funding round. The fundraise comprises an equity round of INR 56 Cr and debt funding of INR 34 Cr.

According to Zype’s MCA filing assessed by Inc42, the startup’s board has approved the issuance of 61.5 Lakh equity shares at an issue price of INR 90.9 to raise INR 56 Cr from Unleash Capital Partners, Xponentia Capital Partners and angel investor Tejinder Singh Hara.

Besides, the startup’s board also approved raising debt funding of INR 34 Cr from Xponentia Capital Partners by issuing up to 34K non-convertible debenture NCD having a face value of INR 10K. 

Of the INR 56 Cr equity raise, Xponentia is infusing INR 36 Cr, while Unleash and Singh are investing INR 17 Cr and INR 2.4 Cr, respectively. 

Inc42 has reached out to Zype founder Yogi Sadana for comments on the development. The story will be updated based on his response.

Founded in 2022, Zype operates as a credit-first financial well-being and lifestyle app, helping users to get instant credit. The startup received its non-banking financial company (NBFC) licence in 2023, and it has been working in the areas of improving credit accessibility for millennials and aiding in developing sustainable financial habits.

The startup previously raised INR 146 Cr in a funding round led by Xponentia Capital, with plans to build its technology platform, expand the team and acquire more customers back then.

The development comes at a time when fintech ventures are attracting increasing investor interest due to their expanding market opportunities.

Notably, fintech startups raised $1.6 Bn across 68 deals during the first half of this calendar year, marking a near 56% jump from $1.1 Bn raised in 84 deals in the same period last year. 

Sequentially, funding rose 7% from $1.5 Bn in H2 2024. 

The higher capital inflow into the sector came on the back of a big spurt in growth and late-stage deals, signalling investors’ preference for proven business models over experimental ventures.

Prominent deals in the sector included neobanking startup Zolve’s $251 Mn fundraise in March and Groww’s $202 Mn equity raise in the run-up to its IPO.