Ziploan - Small Business Loan Provider

ZipLoan, operated by Blue Jay Finlease Limited, is a fintech company established in 2015 with a mission to address the credit gap for small and medium-sized enterprises (SMEs) in India. The company was co-founded by Kshitij Puri and Shalabh Singhal, who serve as the CEO and COO, respectively. Both founders bring relevant experience to the venture; Kshitij Puri previously worked at Capital One in the UK, focusing on underwriting and credit for small businesses, while Shalabh Singhal has a background in operations and sales from his time at companies like ITC and an e-commerce platform he co-founded.

The firm positions itself as a digital lender, targeting a market of over 8 million digital-ready small businesses, particularly within the manufacturing and service sectors. A key focus for ZipLoan is serving customers who are new to formal business credit, with approximately 70% of its clientele falling into this category. The company's business model revolves around providing accessible and timely financial products tailored to the specific needs of SMEs. Revenue is generated from the interest and fees charged on its loan products.

ZipLoan's product suite includes unsecured business term loans ranging from ₹1 lakh to ₹7.5 lakhs, with tenures of 12 to 36 months. These loans are designed for various business needs such as working capital, inventory purchase, or small-scale expansion. The company also offers a Line of Credit for short-term working capital needs and a 'Buy Now, Pay Later' (BNPL) option for machinery purchases at the point of sale. A distinctive feature of ZipLoan's operation is its proprietary credit scoring model, the 'ZipScore', which evaluates a business's financial health and cash flows rather than relying solely on traditional credit scores. This allows for faster loan processing, with decisions often made within 24 hours and disbursals in as little as three days, a significant reduction from the weeks or months typical of traditional lenders.

The company has secured financial backing from prominent venture capital firms, including Elevation Capital (formerly SAIF Partners) and Matrix Partners India. These funding rounds have enabled ZipLoan to expand its technological infrastructure, enhance its product offerings, and broaden its geographical reach across various Indian cities, including Delhi NCR, Mumbai, and Lucknow.

Keywords: SME lending, fintech, business loans, digital banking, working capital, credit scoring, financial services, NBFC, machinery finance, unsecured loans