Digital lending platform Yubi has secured a significant equity infusion of Rs 250 crore from its founder and chief executive, Gaurav Kumar. This investment, approved by Yubi’s board of directors in August, will increase Kumar’s stake in the company from around 14% to over 20%. Yubi, previously known as CredAvenue, anticipates reaching breakeven by the end of this fiscal year, with plans to become profitable next year, driven by business expansion and further investment in product development.
This capital boost follows a series of recent leadership changes within Yubi and its associated firms. Notable appointments include Bharat Krishnamurthy as Chief Technology Officer (CTO) for both Yubi and Aspero, and Ramesh Ramanathan as Deputy Chief Financial Officer of Yubi Group. Supported by investors like Peak XV, Lightspeed, Lightrock, and TVS Capital, Yubi raised $137 million in a Series B funding round led by Insight Partners in March 2022, achieving unicorn status with a valuation of $1.5 billion after a secondary share sale that separated it from its parent company, Vivitri Capital.
Founded in 2020, Yubi operates as a comprehensive technology-driven debt platform, connecting banks and non-banking financial companies (NBFCs) with corporations seeking debt, fintechs interested in co-lending opportunities, and NBFCs looking to securitize their assets. The company has expanded its offerings through multiple acquisitions, including Spocto, a digital debt collections solution, and Corpository, a SaaS-based credit assessment tool. Additionally, Yubi launched Aspero, a platform that facilitates investment in fixed-income securities for retail investors and wealth partners. To date, Yubi has facilitated over Rs 1.4 lakh crore in debt transactions, serving more than 17,000 enterprises and 6,200 investors and lenders.