Mumbai-based financial technology company Zype has raised Rs 90 crore in its Series B funding round led by Japanese venture capital firm UNLEASH Capital Partners.

Existing investor Xponentia Capital participated in the funding round.

Yogi Sadana, founder and CEO of Zype said the fresh capital will help the company to to expand its lending and payment product offerings.

"(We also plan to) leverage artificial intelligence to enhance operational efficiency, and scale our business responsibly while preserving profitability, strong risk management practices, and exemplary corporate governance," added Sadana.

Zype was founded by Sadana and Ajay Relan in 2022. Relan, seen as the doyen of Indian private equity industry, passed away in 2021. Relan was also serving as partner at Xponentia Capital. He was earlier founder and managing partner at private equity firm CX Partners.

Zype has built a registered user base exceeding 8 million individuals and has extended credit to over 300,000 customers. Currently, Zype operates at an annual loan disbursement rate surpassing Rs 1,200 crore, it claimed.

Earlier in 2022, Zype had secured Rs 146 crore in its Series A round, which was led by Xponentia Capital.