Yogi Sadana-Led Zype Sets Sights on Strategic Growth in Tier II Cities

By Sunil Sonkar
2 Min Read
Yogi Sadana-Led Zype Sets Sights on Strategic Growth in Tier II Cities

Zype, a digital lending startup led by Founder and CEO Yogi Sadana, is making a bold move to change how people get loans in India. They are focusing on growing in smaller cities (like tier II cities) where there is a big need for loans and there is less competition as well as less risk.


Yogi Sadana mentioned the challenges digital lenders have in big cities. He explained that many people there want loans and many lenders are competing. The plan is to go to places with less competition and risk to grow the business.

Sadana highlighted that people in these areas now have more money and are looking for the latest tech products. He also mentioned that big cities have already met the demand for these products. Zype, which commenced operations in February, secured an impressive Rs 146 crore in funding led by private equity firm Xponentia Capital.

Distinguishing itself from traditional digital lenders fixated on metropolitan expansion, Zype sees immense potential in tier II and tier III cities like Mysore and Vijayawada. Currently, 60% of its revenue is generated from these regions and the remaining 40% from tier I cities. The startup anticipates a significant surge in the unsecured personal loan space in 2024.

Recent data from the Reserve Bank of India (RBI) highlights this trend, revealing a substantial 23% increase in unsecured personal loans up to September 2023 compared to the previous year. Zype specializes in extending unsecured credit to salaried individuals, with loan amounts averaging Rs 35,000-40,000 over 3-12 months at an annual rate of about 28%.

Founded in 2022 by entrepreneur Yogi Sadana, Zype is a fintech startup dedicated to making credit accessible to the next generation of borrowers in the country.

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