Yubi: What Makes This Company a One-Stop Solution for the Debt Market?

It is considered that investing in debt is one of the most beneficial forms of investment that yields returns. It is also the most important marketplace today, as it keeps the economy moving. Secured debts and unsecured debts are the two major kinds of the debt market.

The most interesting fact about the debt market is that it also provides more funding options for public and private sector initiatives, reducing the reliance on institutional finance. Moreover, the debt market also improves the utilization of resources by releasing immobile retail investments such as gold.

Founded in 2020, 'CredAvenue', now known as 'Yubi', is one of the leading debt marketplaces in India today. The company was founded by Gaurav Kumar and Vineet Sukumar in Chennai.

Uncover more about Yubi's Founders, Startup Story, Funding and Investors, Acquisitions, Business Model and Revenue Model in the article ahead.

Yubi - Company Highlights

Yubi - About
Yubi - Industry
Yubi - Founders and Team
Yubi - Startup Story
Yubi - Mission and Vision
Yubi - Name and Logo
Yubi - Products and Services
Yubi - Business Model
Yubi - Revenue Model
Yubi - Growth
Yubi - Funding and Investors
Yubi - Mergers and Acquisitions
Yubi - Investments
Yubi - Competitors
Yubi - Future Plans

Yubi - About

Initially, the company was named CredAvenue and was designed as a credit infrastructure component that serves as a one-stop shop for all debt market players in India, as well as the first port of contact for overseas investors.

It provides a comprehensive platform for investors, which will allow them to discover, analyze, and execute deals in a timely manner. Furthermore, the company offers smooth online execution of all debt instrument transactions and delivers real-time alerts on different transaction stages that are actionable.

CredAvenue changed its name to 'Yubi' in June 2022 with a new vision to hold the long-term goal of being omnipresent in the loan ecosystem. Its goal is to heighten the debt market in India and release the true potential of enterprises that have inadequate access to capital.

CredAvenue was formed to deal with different types of capital requirements, like bonds, co-lending, loans, etc. But with the new formation, 'Yubi' aims to grow and capture the global debt marketplace by becoming the one-stop solution for its customers.

Check out what the founder and CEO of Yubi, Gaurav Kumar, said about the rebranding,

“This is an exciting transformation and a solid foundation for the constantly evolving nature of our business. Yubi represents the beginning of our global ambitions as we prepare to launch our first international office in UAE, successfully debuting in the MENA region. Another reason for the brand identity change stems from our conversations with customers and other stakeholders on how technological integration because of data security concerns around financial information remains one of the key deterrents in the advancement of digital finance. We aim to bridge this trust deficit, and in this effort of humanizing the brand, we’re confident of further building our platform, which thrives on new opportunities for people and businesses alike.”

Yubi - Industry

The investment tech sector is anticipated to become the fastest-growing fintech area in India with a growth rate of 30% between 2022 and 2030, according to data research by Statista.

The financial software as a service industry is predicted to expand at a compound annual growth rate (CAGR) of 27% over the same time frame, trailing closely behind. With these developments, it is anticipated that by 2030, the Indian fintech market as a whole will be valued at more than two trillion dollars.

Yubi - Founders and Team

Gaurav Kumar and Vineet Sukumar are the Co-Founder of Yubi.

Gaurav Kumar

Gaurav Kumar is the Co-Founder and CEO of Gaurav Kumar. Before establishing Yubi, Gaurav Kumar was associated with many organizations and also founded a couple of other companies, like Northern Arc Capital in 2008 and Vivriti Capital in 2017. Gaurav serves as the Board Member of Corpository, which is an acquired company of Yubi. He graduated from the Anand Institute of Rural Management (IRMA). In August 2024, Gaurav Kumar invested INR 250 crore ($30 million) in his startup, marking one of the largest founder-led capital infusions in recent tech history.

Yubi - Startup Story

Yubi set out on a mission to transform India's debt markets and unlock the unrealized potential of its businesses with just 8 personnel and a daring concept in 2020. The founders of Yubi recognized the difficulties brought on by restricted finance access and decided to lead change via innovation. Thus, Yubi previously (CredAvenue) a cutting-edge platform designed to handle a variety of capital needs, from loans to securitization—was established.

The founders of CredAvenue realized they needed a more comprehensive brand to reflect their changing goals and objectives as the company quickly gained popularity and broadened its reach. With this conclusion came the creation of Yubi, a company that has the potential to completely alter the loan financing market in India.

Yubi - Mission and Vision

The company's mission on its website states "to create a ubiquitous, transparent, responsible, and trusted solution for finance that can truly transform your dreams into reality."

The company's vision is "to expand the debt market and fully unleash the potential of Indian businesses that have been hampered by limited access to funding."

Yubi - Name and Logo

Yubi's name was changed from CredAvenue to Yubi in the later months of 2022.

With the aim to remain everywhere in the debt market world, the name 'Yubi', is derived from the term 'ubiquitous', which strongly reflects its objective.

Yubi - Products and Services

The Chennai-based startup offers six different products which are designed to cater to different needs, these are as follows:

• Yubi Pools - This platform is for securitization and portfolio monitoring.
• Yubi Co.lend - This product is created for banks and NBFCs to partner in co-lending and offer joint loans to borrowers.
• Yubi Loans - This digitized platform offers a seamless experience to speed up the loan process.
• Yubi Flow - This platform is meant for an end-to-end supply chain for trading finance solutions.
• Yubi Invest - This platform is India's leading fixed-income platform to offer solutions for all fixed-income investment requirements. Some of the products under this platform are Market Linked Debentures, Non-Convertible Debentures, Commercial Papers, And Perpetual Bonds.
• Yubi Build - This platform is meant for Real Estate and Infrastructure Financing.

Yubi - Business Model

Yubi serves as a digital marketplace middleman, connecting businesses in need of debt financing with a large network of more than 750 lenders and investors. Yubi has streamlined the borrowing process by facilitating transactions for over 2000 businesses through its online platform.

Yubi is a global company with six offices that operates by integrating technology and finance in a fluid way to offer businesses all over the world a variety of financing options. This strategy demonstrates Yubi's dedication to changing the debt finance industry and enabling companies to grow and prosper.

Yubi - Revenue Model

Yubi makes revenue from different resources; some of the prominent ones are:

Take Rate fee: The take rate fee that Yubi charges for facilitating loans through its platform is the company's main source of income. Yubi currently makes a substantial portion of its revenue from a commission of 46 basis points each disbursal.

Assets Under Management (AUM): The expansion of Yubi's AUM is directly related to the revenue model of the company. The company receives income from the interest and fees connected to these assets as loans are disbursed via Yubi's platform.

Transaction Volume: Yubi guarantees a consistent flow of transactions between lenders and borrowers by utilizing its digital marketplace. Since each transaction results in commission income, Yubi's revenue is directly impacted by the volume of transactions.

Yubi - Growth

Yubi's growth highlights are:

• It has a presence in 6 locations as of February 2024
• The company has 8 products as of February 2024
• It has 2000+ enterprises as of February 2024
• Yubi has 750+ lenders as of February 2024
• In March 2022, Yubi turned into a unicorn startup.

In 2024, Yubi and AI4Bharat have partnered to develop India’s first Automatic Speech Recognition (ASR) engine aimed at advancing financial inclusion in the country. In 2022, Yubi collaborated with SBI to enhance credit accessibility for priority sectors.

Financials

EBITDA

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Yubi - Funding and Investors

Yubi has received $226.7 million of funding in three rounds.

The list of funding details are:

Yubi - Mergers and Acquisitions

Yubi has acquired three companies to date.

Here are the details:

In August 2024, Yubi Group consolidated its acquired entities, Corpository and FinFort, under the new brand name Accumn, a platform designed to enhance AI-driven credit decision-making and monitoring.

Yubi - Investments

Yubi - Competitors

Yubi competitors are:

• Creditas Solutions
• Crediwatch
• Skit
• Saarthi.ai

Yubi - Future Plans

Yubi's future plans involve migrating to Oracle Cloud Infrastructure (OCI) to enhance its IT capabilities. By leveraging OCI services like Compute VMs, Object Storage, and OCI Database with PostgreSQL, Yubi aims to secure flexible computing capacity for projects of all scales.

The adoption of OCI promises high-performance computing and cost-effective cloud storage, boosting the efficiency of its IT operations. This move signifies Yubi's strategy to merge open-source technology with OCI for improved performance and reduced costs, positioning the company for success in a competitive landscape.

FAQs

Is Yubi an NBFC?

No, Yubi is not an NBFC.

What is the meaning of Yubi?

Yubi is a Japanese word meaning graceful.

Where is Yubi based?

Yubi is based out of Chennai, India.