Total amount raised
$20.9 Millions
Latest funding date
09/01/2022
Location
ZipLoan has successfully raised funds through multiple rounds, with the latest being a Corporate Round from StrideOne on September 2, 2022. The company offers a range of financial products tailored for small and medium businesses, including business loans, working capital loans, and machinery loans.
With a focus on minimal documentation and quick fund disbursement, ZipLoan aims to provide easy access to formal credit for SMEs. Keep reading to explore the intricacies of ZipLoan's fundraising journey and the investors backing this innovative platform.
What Is ZipLoan?
Founded in 2015, ZipLoan is a digital bank headquartered in Delhi, India. The company was established by Kshitij Puri and Shalabh Singhal. It operates as an RBI registered Non-Banking Financial Company (NBFC) focusing on providing financial services to small and medium businesses (SMBs) in the manufacturing and service sectors.
ZipLoan offers a range of loan products, including business loans, working capital loans, and machinery loans. With an employee count ranging from 101 to 250, the company aims to address the financial needs of SMBs through a technology-enabled online lending platform. ZipLoan has a presence in multiple cities, including Bhopal, Indore, Jaipur, Lucknow, Mumbai, and Bengaluru.
How Much Funding Has ZipLoan Raised?
- Seed Round
- Amount Raised: $650K
- Date: June 2017
- Lead Investors: WaterBridge Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish initial operations and develop proprietary technology for credit assessment and loan management.
- Series A
- Amount Raised: $3M
- Date: October 2017
- Lead Investors: Z47
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand lending capabilities and market reach.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: July 2018
- Lead Investors: InnoVen Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and operational expansion.
- Series B
- Amount Raised: ₹900M
- Date: February 2019
- Lead Investors: Elevation Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance technological capabilities.
- Debt Financing
- Amount Raised: ₹150M
- Date: August 2020
- Lead Investors: Stride Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth without compromising the quality of the loan book.
- Series B
- Amount Raised: $2.6M
- Date: December 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale operations and enhance technological capabilities.
- Corporate Round
- Amount Raised: Not publicly disclosed
- Date: September 2022
- Lead Investors: StrideOne
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide a financial lifeline and support the company's stability and growth.
Total Amount Raised: $6.25M + ₹1050M
Current Valuation: Not publicly disclosed
Key Investors
- Stride Ventures
- Details: Stride Ventures is a venture debt fund firm that launched its maiden fund in 2019 with a target corpus of Rs 500 crore. It aims to invest in 35-40 startups over the next three years.
- Investment Focus Areas: Sector-agnostic, venture debt, startup ecosystem.
- Notable Investments: Stellapps Technologies Pvt. Ltd, CredR, Bulk MRO Industrial Supply Pvt. Ltd.
- SAIF Partners
- Details: SAIF Partners is a venture and growth capital fund that invests in companies across various stages and sectors. It has a strong presence in the Indian market.
- Investment Focus Areas: Technology, consumer, healthcare.
- Notable Investments: Paytm, MakeMyTrip, JustDial.
- Matrix Partners India
- Details: Matrix Partners India is a venture capital firm that invests in early-stage companies across various sectors. It has a significant portfolio in the Indian startup ecosystem.
- Investment Focus Areas: Technology, consumer, healthcare.
- Notable Investments: Ola, Practo, Quikr.
- InnoVen Capital
- Details: InnoVen Capital is a venture debt provider that offers debt financing to high-growth companies. It has a strong focus on supporting innovative startups.
- Investment Focus Areas: Technology, innovation, high-growth companies.
- Notable Investments: Byju's, Swiggy, OYO.
- WaterBridge Ventures
- Details: WaterBridge Ventures is an early-stage investment firm that focuses on supporting startups in their initial growth phases. It has a diverse portfolio across various sectors.
- Investment Focus Areas: Early-stage investments, technology, consumer.
- Notable Investments: Not publicly disclosed.
What's Next for ZipLoan?
ZipLoan stands at the cusp of significant growth opportunities, driven by its recent debt funding and strategic partnerships with banks and non-banking financial companies. The company is poised to expand its lending services to more MSMEs, leveraging its proprietary ZipScore platform to maintain low non-performing assets and attract a larger borrower base.
Future fundraising opportunities appear promising, with potential for additional venture debt or equity funding rounds. The increasing interest from venture capital and growth-equity investment firms, coupled with the growing digital lending space, positions ZipLoan well for continued financial backing. However, the company must navigate challenges such as managing credit risk, maintaining low NPAs, and adapting to regulatory changes in the fintech sector.
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