Japan’s Unleash Capital Leads Zype’s $10.2M Funding to Scale AI-Driven Lending

Digital lending startup Zype, based in Mumbai, has raised ₹90 crore (approximately $10.2 million) through a mix of equity and debt. Of the total, ₹56 crore came from an equity round led by Japan’s Unleash Capital Partners, with additional support from repeat investor Xponentia Capital, while the remaining ₹34 crore was secured via debt instruments.

With this round, Zype’s cumulative equity funding has now become ₹236 crore. Angel investor Tejinder Singh Hara also joined the round, while Unitus Capital served as the sole financial advisor. The fresh capital will support the fintech firm in scaling its lending operations and enhancing its AI-powered platform tailored for salaried users. 

Regulatory filings show that Zype’s board has cleared the issuance of 61.5 lakh equity shares at ₹90.9 apiece, enabling the startup to raise ₹56 crore from Xponentia Capital Partners, Tejinder Singh Hara, and lead investor Unleash Capital Partners. In addition, the company approved a ₹34 crore debt raise via 34,000 non-convertible debentures (NCDs) issued to Xponentia Capital.

Founded in 2022, Zype operates as a credit-first financial well-being and lifestyle app, offering instant, unsecured personal loans to young salaried professionals for purposes such as weddings, home renovations, and medical expenses. The startup secured its NBFC licence in 2023, which has enabled it to manage lending operations and expand its product suite directly.

To date, Zype has disbursed over ₹1,300 crore in loans and currently manages an AUM of ₹400 crore. Competing with Fibe and KreditBee, the company reports an annual recurring revenue (ARR) run rate of ₹150 crore and achieved break-even in the final quarter of FY25, with expectations of turning net profitable in FY26.

Founder and CEO Yogi Sadana emphasized that the company has grown “in a measured and profitable manner,” adding that the new capital gives Zype a 12–18 month runway without requiring additional equity. Sadana also noted that building a strong credit profile is a priority to unlock future debt funding from banks and NBFCs.

The fintech sector’s momentum has been notable, with $1.6 billion raised across 68 deals in H1 2025, marking a 56% jump year-on-year. Zype’s Series B raise comes amid investor preference for sustainable, profit-driven fintech models, a trend reinforced by large transactions like Zolve’s $251 million and Groww’s $202 million rounds earlier this year.

Zype plans to channel the fresh capital into broadening its lending and payment solutions, increasing its presence in Tier II and Tier III cities, and strengthening its AI-powered credit and risk systems. Founder Yogi Sadana noted that the company aims to grow sustainably, keeping profitability, robust risk controls, and strong governance at the core, while building a reliable credit platform for India’s rising middle-income population.

Image credits: Zype