back Back

Lending startup Zype forays into Tier II markets with Indian expansion

By Gloria Mathias

December 29, 2023

  • Fintech news
  • FinTech solutions
  • India Expansion
Share

Zype, Fintech News, FinTech Solutions, Lending, LendTech, Lending Solutions, India Expansion, India Fintech, India News, Zype, a digital lending FinTech startup led by Founder and CEO Yogi Sadana, has unveiled its focus on expanding its customer base in Tier II cities and beyond, aiming to carve a niche in India’s consumer credit market.

Yogi Sadana said, “Metros exhibit concentrated demand and fierce competition. Identifying pockets with lower competition and risk becomes integral to our strategy in shaping our market presence.”

Yogi Sadana articulated Zype’s commitment to tapping into areas witnessing substantial employment generation and burgeoning consumption trends. He emphasised the shift in consumer dynamics, stating, “These regions are now hotspots for high disposable income groups seeking the next wave of tech products. Metros have reached saturation from a demand perspective.”

Having commenced operations in February, Zype raised INR 146 crore in funding led by private equity firm Xponentia Capital. The company predominantly specialises in extending unsecured credit to salaried individuals, averaging Rs 35,000–40,000 over 3–12 months at an annual rate of about 28%.

Distinguishing itself from conventional digital lenders fixated on metropolitan expansion, Zype recognises potential in tier II and tier III cities like Mysore and Vijayawada. Presently, 60% of its revenue stems from these regions, while the remaining 40% originates from tier I cities.

Zype anticipates a tremendous surge in the unsecured personal loan space in 2024 as well. Recent Reserve Bank of India (RBI) data reflects a notable 23% increase in unsecured personal loans compared to the previous year, up to September 2023.

Zype is focused on making credit accessible to the next generation of borrowers in India and helping them develop sustainable financial habits. Zype’s goal is to provide a path to financial independence for the digital era with personalised credit products and interactive money management tools that make managing money easy.

Previous Article

December 29, 2023

FinTech Tameed closes $15m series A funding round led by Al-Rumaih Group

Read More
Next Article

December 29, 2023

Insly acquires insurance arm of Polish payments firm TubaPay

Read More






IBSi Daily News Analysis

Data privacy

July 16, 2024

Fintech news

Rise in sophisticated attacks, state-level threats, and increased ransom DDoS Incidents

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

4 Lending platforms making loans more accessible for Indian SMEs

Read More

Today

FIS & Lendio launch ‘SMB Digital Lending’ to boost small business loan processes

Read More

Today

Invest Blue taps GBST for its WealthConnect practice management solution

Read More

Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q2 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2024