Digital Lending Startup Zype Targets Tier II markets and for Strategic Expansion in India

Mumbai 29th December 2023: Zype, a pioneering digital lending startup led by Founder and CEO Yogi Sadana, has unveiled its strategic focus on expanding its customer base in tier II cities and beyond, aiming to carve a niche in India’s bustling 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 emphasized 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 an impressive Rs 146 crore in funding led by private equity firm Xponentia Capital. The company predominantly specializes 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 recognizes immense 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.

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