Xponentia Capital-backed fintech lender Zype has mandated Unitus Capital to raise ₹150–200 crore in primary funding, as the company looks to accelerate expansion, two people familiar with the matter said.
The proposed round comes at a time when non-banking finance companies (NBFCs) face tighter regulatory scrutiny and rising stress in unsecured lending, making fresh capital crucial to strengthen balance sheets and support calibrated growth.
“Several mid-market private equity firms or late/growth stage venture capital firms will be tapped as a part of the process. The deal is expected to be launched in the coming weeks,” one of the people cited above said.
“The company is looking to double down its presence in its existing areas of operations after it became PAT positive in the current financial year,” a second person said.
Both the people spoke on the condition of anonymity. Unitus did not respond to Mint’s requests for a comment. Zype’s founder Yogi Sadana confirmed the fundraise to Mint.
“We are seeing strong momentum in business with stable credit performance and disciplined customer acquisition costs. We remain focused on scaling responsibly keeping the consumer and compliances at the centre of our business,” he said.
“In the near term, our priorities are to deepen our presence, broaden our product suite, and continue strengthening our tech, product, and risk capabilities. The capital raise will help strengthen the balance sheet and support our next phase of growth,” Sadana added.
Sector backdrop
The fundraise comes amid a more cautious operating environment for NBFCs. The sector has posted rapid growth driven by demand for personal loans, MSME financing, vehicle loans and gold loans. However, elevated delinquencies and write-offs in the unsecured segment have prompted the Reserve Bank of India (RBI) to tighten supervision and introduce enhanced, risk-based oversight.
As a result, rating agencies such as ICRA expect growth to moderate this fiscal year, citing higher base effects, tighter liquidity and rising stress in unsecured portfolios.
Financials track
Founded in 2022 by Sadana, Zype offers instant credit and unsecured personal loans to young salaried individuals for needs such as home repairs, weddings and health expenses. It also provides money management tools to help users manage spending, get bill reminders and make timely payments.
In August, the NBFC raised about $10.2 million from Unleash Capital Partners and Xponentia Capital. The fresh capital plan follows a sharp rise in operating revenue, which grew nearly five-fold to ₹101.3 crore in FY25. Its loss before tax widened to ₹12.85 crore from a loss of ₹7.3 crore in FY24, according to an Entrackr report. Zype has turned PAT positive in the first three quarters of FY26, according to one of the persons cited above.
With assets under management of around ₹500 crore, Zype competes with players such as Moneyview, Fibe (formerly EarlySalary) and KreditBee, many of which are at various stages of fundraising as they prepare for potential public listings.
The upcoming round is expected to position Zype for its next phase of expansion while reinforcing capital buffers in an increasingly regulated lending landscape.