Fintech lender Zype raises $12 million in funding led by Unleash Capital Partners.

Mumbai-based fintech lender Zype has raised Rs 90 crore in a funding round led by Japanese VC fund Unleash Capital Partners. Existing investor Xponentia Capital also participated in the round. The startup received an NBFC licence in 2023 and has since disbursed Rs 1,300 crore. Its current assets under management stand at Rs 400 crore. Zype caters to young salaried consumers and provides unsecured personal loans for wedding expenses, home repair, and health emergencies. The startup aims to grow for the next 12-18 months without a fresh equity round.

Mumbai-based digital lending startup Fibe is planning a $35 million funding round, led by the International Finance Corporation (IFC), the impact investing arm of the World Bank Group [1]. The round also seeks participation from Fibe's existing investors, including Eight Road Ventures, Norwest Venture Partners, and TPG through The Rise Fund.

Fibe has already raised approximately $228 million since its inception, with the latest round in June 2024 securing $90 million, a mix of primary and secondary capital [1]. The company, previously known as EarlySalary, has expanded its offerings to include longer-tenure personal loans, check-out finance, credit cards, and specialized loans such as education, medical, and green energy loans [1].

The funding round is seen as a significant validation of Fibe's impact-driven lending business. IFC's involvement is considered a strong endorsement, especially given that TPG, another global investor, is already part of Fibe's capitalization table [1].

Fibe's financial performance has been robust, with a net profit of Rs 100 crore and total revenue exceeding Rs 1,000 crore in the last financial year. The company has built an assets under management (AUM) of Rs 4,428 crore, with 56% of the book through its own non-banking finance company (NBFC), Earlysalary Services [1].

Fibe's growth trajectory is notable amidst the challenges faced by many consumer lending startups in India. The company is positioning itself for a potential IPO in the next one to two years, following the trend of major consumer lending startups like Kissht, Moneyview, and Kreditbee preparing for public listing [1].

References:
[1] https://economictimes.indiatimes.com/tech/funding/digital-lending-startup-fibe-eyes-35-million-fundraise-from-ifc/articleshow/123100554.cms