Indian fintech start-up Zype, which is in stealth mode, raised Rs 146 crore ($18 million) in a funding round led by mid-market private equity firm Xponentia Capital. BFSI sector veteran Vivek Vig also participated in the investment round.
The company aims to invest this capital in improving its technology stack. Additionally, it wants to hire more skilled staff across multiple functions for its go-to-market operations in the near future.
The fintech is planning to launch its operations in the next year as it aims to improve accessibility to credit for millennials. Additionally, it wants to develop sustainable financial habits, Mint reported.
Talking about the recent development, Yogi Sadana, the founder and chief executive of Zype, said, “We are in the process of building Zype, a customer-first platform where we intend to offer credit products and interactive money management tools.”
Addressing their decision to invest in Zype, P.R.Srinivasan, the managing partner of Xponentia Capital, said, “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.”
This has been the first investment for the company with its latest fund in a new-age fintech start-up.
Indian tech start-up ecosystem is currently going through a tough patch. Several edtech companies were seent to cut down their employee numbers to combat the economic downturn. Amid this tough time and fund crunch, fintech enterprises managed to able some good deals in recent times.
For instance, KreditBee, a Bengaluru-based start-up raised $80 million in a Series D funding round led by Premji Invest, Motilal Oswal Alternates, Mirae Asset Ventures and NewQuest Capital Ventures. In November, HDFC Bank-backed Lentra raised $60 million in a series B funding round.