Zype, a fintech platform focused on lending to millennials, expects to increase its loan book to Rs 500 crore within a year.
Yogi Sadana, founder of Zype, said the company has a user base of 2 million.
“We have built Zype on the foundation of an intuitive user experience that is easy to navigate, personalised offers for users tailored to their credit profile, and transparency of credit terms,” he said.
On average, users take less than six minutes to complete their application, a credit offer is generated in under 60 seconds, and the loan transfer can be initiated instantly, according to the company.
Zype has disbursed one lakh loans till date.
All credit products are charged on the reducing balance interest rate and there is no pre-closure charges, Sadana said.
The start-up raised its first investment round of $18 million from private equity firm Xponentia Capital and Vivek Vig, a BFSI sector veteran.
The fintech start-up’s creditworthiness assessment is based on alternative data. Zype looks at more than 100 variables analysed by its automated underwriting algorithms to build an internal credit profile of the customer and predict repayment capability.