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Startup Zype Raises $18 Mn From Xponentia Capital

The startup aims to use the funds to invest heavily on its technology stack, hire talent across multiple functions and for the go-to-market operations in the coming months

Xponentia Capital, a mid-market private equity firm, has led a 146 crore (nearly $18 million) funding round in fintech startup Zype, marking the first investment from its latest fund in a new age fintech startup. Vivek Vig, a BFSI industry veteran, also took part in the round. Vig has also served as a mentor to the startup.

Zype, which is currently in stealth mode, aims to improve millennials' access to credit and assist them in developing sustainable financial habits.

Zype is a credit-first financial wellbeing and lifestyle app that is expected to launch next year.

Sadana claims that the platform's intuitive money management tools can assist credit users in managing their spending, receiving bill reminders, and making timely payments via the app.

The startup aims to use the funds to invest heavily on its technology stack, hire talent across multiple functions and for the go-to-market operations in the coming months.

Xponentia completed the first close of its new vehicle in July of this year, and the final close is expected in December. Further, it had planned to raise Rs 750 crore, nearly double what it had raised in its previous outing.

Due to a partial exit from Barbeque Nation and a full exit from its investment in Spoton Logistics, Xponentia returned more than 90 per cent of the principal from the first fund.

In 2021, Delhivery paid approximately $235 million for Spoton Logistics.

Flight Simulation Technique Centre, Easy Home Finance, R4Rabbit, Medsource, and Altigreen are among the companies that have made investments in the debut fund.

Several startups in the broader fintech space have secured large ticket sized cheques despite the overall startup ecosystem facing a funding crunch and valuation correction. However, follow-on funding from existing investors dominated some of these transactions.


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