Xponentia Capital, a mid-market private equity firm, has led a Rs 146 crore (nearly $18 million) funding round in fintech startup Zype, marking the first investment from its latest fund in a new age fintech startup. Vivek Vig, a BFSI industry veteran, also took part in the round. Vig has also served as a mentor to the startup.

Zype, which is currently in stealth mode, aims to improve millennials’ access to credit and assist them in developing sustainable financial habits.

Zype is a credit-first financial wellbeing and lifestyle app that is expected to launch next year.

Sadana claims that the platform’s intuitive money management tools can assist credit users in managing their spending, receiving bill reminders, and making timely payments via the app.

In the coming months, the startup intends to use the funds to heavily invest in its technology stack, hire talent across multiple functions, and for go-to-market operations.

Xponentia completed the first close of its new vehicle in July of this year, and the final close is expected in December.

Ajay Relan, a PE veteran who died last year, co-founded the firm. It had planned to raise 750 crore, nearly double what it had raised in its previous outing.

Due to a partial exit from Barbeque Nation and a full exit from its investment in Spoton Logistics, Xponentia returned more than 90 per cent of the principal from the first fund.

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