Z47 doubles down on AI-first fintechs, plans to back global startups building for India

Vikram Vaidyanathan- Z47

Z47 (formerly Matrix Partners India) is ramping up investments in tech-first fintech and AI startups, both in India and globally.

“One in four, or more of our investments now are in global companies with an India edge” said Vikram Vaidyanathan, Managing Director at Z47, noting that founders serve global markets with global founding teams from day zero, with India presence serving as a key long term edge.

The firm is backing tech-enabled NBFCs targeting SMEs and B2B lending.

“Firms like Finnable, Oolka, GreyLabs are adopting AI and tech in customer outreach, underwriting, and loan workflows like never before,” he said adding that In consumer lending, digital-first cards and UPI-based credit lines are boosting penetration at lower costs, with startups like OneCard , Scapia and Jupiter leading the way.

Vaidyanathan said the current wave of lending innovation is defined by cost efficiency and tech-led underwriting.

“On the B2B and SME side … we are seeing some of the most tech-enabled NBFCs come up now, it just never has happened before,” he said, pointing to companies such as Finnable, Seeds Fincap and InPrime, which are deploying digital workflows and data-driven underwriting to serve underserved borrowers.

On the consumer lending front he noted the rise of digital-first credit cards and UPI credit lines: “We now have people with Rs 50,000 credit lines, Rs 20,000 credit lines going up to Rs 2 lakh credit lines on UPI… it’s a game-changer in terms of driving penetration overall at a far lower cost to serve.”

In the “neobank” category he said caution is warranted: “We were too early on this category. Winners will emerge over time… If you look at Razorpay, PhonePe, Groww, timing of enablers coming together mattered. The same will hold for neobanks as regulations evolve.”

Looking ahead, Z47 plans to double down on companies marrying AI and digital journeys.

“Financial services haven’t changed in 300 years, the needs are the same. What’s changing is how you build trust with customers. Today that’s via phenomenal digital experiences,” said Vaidyanathan. “As users adopt GPT and conversational interfaces, we’re betting on those who can merge AI and digital trust.”

The firm recently backed the AI-native enterprise startup Atomicwork in a US$25 million Series A led together with Khosla Ventures, underlining its global play.

On its own evolution, Z47 closed its Fund IV at over US$550 million in May 2023 and formally re-branded from Matrix Partners India in July 2024, to reflect the firm’s independent and India-first strategy.

The name “Z47” is inspired by India’s journey to become a developed nation by 2047. Reports suggest that the firm is in early discussions to launch a new fund of US$300-400 million post-2026 to fuel its next phase.

Z47, which has backed fintech firms such as OneCard, Oxyzo, and Five Star Business Finance, is expanding its focus to AI-first business models and startups building for both India and global markets. The firm is channeling capital into founders who are operating globally from day zero and leveraging India’s deep talent pool to serve international customers.