With the fresh funding, Zype plans to build its technology platform, expand the team and acquire more customers
Zype helps users to get instant credit. It works in the areas of improving credit accessibility for millennials
Overall, fintech startups in India raised a total of $815 Mn in Q3 2022
Fintech startup Zype, which is presently working in stealth mode, has raised INR 146 Cr in a funding round led by Mumbai-based private equity fund Xponentia Capital.
With the fresh funding, Zype plans to build its technology platform, expand the team and acquire more customers and finally launch in the next year.
“We are in the process of building Zype, a customer-first platform where we intend to offer credit products and interactive money management tools.Our passionate young team has been dedicatedly working on the technology platform,” Yogi Sadana, founder and CEO of Zype said.
Zype, which is a credit-first financial well-being and lifestyle app, helps users to get instant credit. It works in the areas of improving credit accessibility for millennials and help them develop sustainable financial habits.
“Interestingly when RBI’s digital lending guidelines were announced, we had to hardly change our direction. This was possible because we always kept the customer and all required compliances at the centre of our product development, from the get-go,” Yogi added.
Xponentia Capital Partners LLP (Xponentia) is a mid-market private equity firm which claims to have AUM of more than INR 1,000 Cr.
“The future of fintech in India looks robust and with the Zype management team’s experience in technology, risk management, finance and payments, we are confident that Zype will play a key role in the fintech industry,” PR Srinivasan, managing partner of Xponentia Capital said.
Although fintech remains one of the highest-funded sectors, the ongoing funding winter has impacted the funding momentum of fintech startups. The average funding ticket size in the sector plummeted 58% year-on-year (YoY) to $15.3 Mn in Q3 2022 from $31 Mn.
The average ticket size during the quarter was 33.5% lower from $23 Mn in Q2 2022. It was also a 61.75% decline from the peak average ticket size of $40 Mn achieved in Q4 2021.
Overall, fintech startups in India raised a total of $815 Mn in Q3 2022 as compared to $6.8 Bn in Q2 2022.