Zype’s Financial Growth in Digital Lending

Digital lending startup Zype has experienced an impressive surge in operating revenue, reaching over Rs 100 crore in the fiscal year ending March 2025. However, alongside this growth, expenses have also escalated significantly, largely attributed to bad debt write-offs and increased provisions for non-performing assets.

Zype’s operational revenue increased nearly fivefold, from Rs 20.3 crore in FY24 to Rs 101.3 crore in FY25, according to financial statements obtained from the Registrar of Companies. Operating as a non-banking financial company (NBFC), Zype offers unsecured personal loans to young salaried professionals for various needs, including weddings, home repairs, and medical expenses.

Revenue Composition

In FY25, Zype’s interest income from loans surged to Rs 62 crore, almost six times the Rs 10.58 crore reported in FY24, marking 61% of its overall revenue. Additionally, processing fees saw a remarkable fivefold increase, rising to Rs 34.39 crore and representing 34% of total income.

The startup also earned Rs 4.8 crore from other operating services, which included penal charges, and another Rs 4.7 crore from non-operating revenues such as interest from fixed deposits, income tax refunds, and gains from mutual funds. This brought Zype’s total income for FY25 to Rs 106 crore.

Expense Analysis

Employee benefits accounted for 20% of total costs, with these expenses rising 89% to Rs 24 crore in FY25. Finance costs from borrowings made up 19% of expenses, increasing to Rs 22.6 crore, a substantial jump from Rs 1.6 crore in FY24. Marketing expenditures also doubled to Rs 10 crore during the same period.

The company wrote off bad debts totalling Rs 19 crore and allocated Rs 7.95 crore for provisions related to non-performing assets, together comprising 22.67% of total expenses. Other overhead costs, including office lease rentals, legal and professional fees, IT expenditures, and verification costs, added another Rs 35.4 crore to expenses.

Overall, total expenditures for Zype surged more than 3.3 times to Rs 118.9 crore in FY25, up from Rs 35.8 crore in FY24. Despite the impressive revenue growth, losses rose by 76% to Rs 12.85 crore in FY25, compared to Rs 7.3 crore in the previous year.

Operational Efficiency

At an operational level, Zype spent Rs 1.17 to generate one rupee of operating revenue in FY25. As of March 2025, the company’s current assets were valued at Rs 368.7 crore, which included cash and bank balances amounting to Rs 33.65 crore.

According to various startup data intelligence platforms, Zype has successfully raised over $30 million, which includes a funding round of Rs 90 crore (approximately $10.2 million) led by Japanese venture capital firm Unleash Capital Partners, along with contributions from existing investor Xponentia Capital.