zypl.ai, a generative artificial intelligence (AI) fintech lending startup, announced it secured significant investment from Dubai-based corporate and retail bank Commercial Bank International (CBI) along with other global investors in a post-seed bridge round.
This strategic investment precedes zypl.ai’s anticipated Series A funding round set for later in 2024.
Founded in 2021 by Stanford and Harvard alum Azizjon Azimi, zypl.ai has quickly demonstrated its market viability, achieving over $1 million in annual recurring revenue and maintaining more than a 20% compounded monthly growth rate since its sales launch.
Notably, the company has reached operational break-even status and is eyeing expansion in microfinance and credit unions across Southeast Asia and North America, respectively, along with exploring underwriting in the insurance sector.
zypl.ai’s flagship product, zypl.score, empowers financial institutions to refine credit decision models for retail and SME portfolios using synthetic data.
The platform has seen adoption by over 35 banks in 12 markets across Eurasia, facilitating the underwriting of more than $100 million in credit portfolios with minimal default rates.
Leveraging proprietary generative adversarial networks (GAN) built on over 54 million data points, zypl.ai offers dynamically trained AI models capable of adapting to changing macroeconomic conditions.
The collaboration between CBI and zypl.ai began with a proof of concept in the summer of 2023, which successfully demonstrated the potential of zypl.ai’s synthetic AI algorithms to significantly reduce default rates.
Following this success, CBI moved to a commercial pilot of zypl.score and has since proceeded to full deployment in its retail lending operations.
Azizjon Azimi, founder of zypl.ai, commented on the disruptive potential of generative AI in finance, stating:
Our rapid traction is proving that generative AI is not just in content creation – it is a disrupting technology that can shake up the world of finance.
He highlighted the limitations of traditional credit scoring models and proposed a novel approach that includes training on synthetically generated data to ensure portfolio resilience across economic cycles.
In addition to operational achievements, zypl.ai has raised $1.2 million in its latest funding round at a post-money valuation of $25 million.
This investment marks CBI’s deeper foray into financial technology innovation, with Ali Sultan Rakkad Al Amri, CEO of CBI, expressing strong support for zypl.ai’s growth and the broader fintech ecosystem. CBI’s investment in zypl.ai will also grant it a seat on the startup’s Board of Directors.