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It is considered that investing in debt is one of the most beneficial forms of investment that gives returns. It is also the most important marketplace today as it keeps the economy steering. 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.
Yubi - Company Highlights
- Headquarters-Chennai, Tamil Nadu, India
- Sector-Financial Services
- Founder-Gaurav Kumar and Vineet Sukumar
- Previously known-CredAvenue
- Founded -2020
- Valuation-$1 billion
- Revenue-Rs 153 crore (FY22)
- Total Funding Raised-$226.7 million
Yubi - About and how does it work?
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 had inadequate access to capital. CredAvenue was formed to deal with different types of capital requirements like bonds, co-lending, loans, etc. But now, 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.”
The company claims to have helped more than 3000 enterprises with over 2.3k corporates. On the one hand, the Yubi product suite is driving the empowerment of small, medium, and big firms, while on the other, it is building a healthy loan book for the wider Banking ecosystem. Yubi mostly deals in bonds, financial markets, business loans, co-lending debt raise, supply chain finance, securitization, fixed income instruments, and capital. It also joined the unicorn club earlier in 2022.
The video shows the company's objective behind the new name
Yubi - Industry details
Today, India is regarded as the land for having the fastest growing FinTech markets in the world. The overall Indian FinTech industry was reported to be worth $50 billion in 2021 and is estimated to be worth $150 billion by 2025.
Before establishing Yubi, Gaurav Kumar has been 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).
Vineet Sukumar is an alumnus of IIT, Kharagpur. Along with founding Yubi, Vineet has also co-founded Vivriti Capital, which is India's first tech-enabled marketplace that brings investors from small and medium institutions and individuals in one place. He has served as the CEO of IFMR Investments Manager Private Limited for almost two years. Besides this, Vineet formerly worked for the Tata Group and Standard Chartered Bank in investment banking, strategy, and capital markets.
Yubi - Mission and Vision
The mission statement of Yubi is, "To deepen and power the $120 Trillion global enterprise debt market to unlock a GDP multiplier to create massive economic value. "
Yubi - Name, Tagline, Logo
Yubi's name was changed from CredAvenue 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.
The tagline of Yubi goes, "Go Get Great
Yubi - Business & Revenue Model
Yubi operates its business by facilitating debt finance for companies through lenders and investors with borrowers through the digital marketplace. It has helped over 2000 enterprises with 750 lenders. Yubi has offices located in six different places.
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's income comes from offering these one-stop solutions for all financial needs mentioned above. However, it is reported that platform fees earned for loan facilitation are Yubi's primary source of earnings, accounting for 92.5% of total operating revenue.
Yubi - Revenue and Growth
The growth of Yubi was seen on the day when it joined the unicorn club in March 2022, when it touched a $1.3 billion valuation. Ever since its inception, Yubi is coming up with new strategies to improve its existing products. The company has shown a stellar performance in the fiscal year 2022 with its operating revenue crossing over Rs 153 crore in comparison to its revenue from the previous year, which was Rs 29.93 crore.
Yubi - Funding and Investors
Yubi has received $226.7 million in investment over two waves. Their most recent funding came in the form of a Series B round on March 6, 2022. The company is backed by nine investors.
The most recent investors are B Capital Group and Insight Partners. Some other top-known investors are - CRED, Light rock, TVS Capital Funds, and Stride Ventures.
Yubi - Mergers and Acquisitions
Yubi has purchased two businesses. On April 26, 2022, they made their most recent purchase, Corpository for which they paid ₹1 billion for Corpository. The first company to be acquired by Yubi is SPOCTO for Rs 400 crore on February 14, 2022.
Yubi - Investments
Yubi has invested in 'Infra. Market', when they raised $30 million in their debt financing round in February 2022.
Yubi - Partnerships
Newly, Yubi has announced partnering up with BSE-listed MSME lending platform, U Gro Capital. This alliance will result in the integration of Yubi's products - Yubi Co.Lend and Yubi flow with GRO-Xstream and GRO-Line of U Gro Capital. As per Yubi, this partnership is meant to leverage its full-stack operating system on U Gro Capital's platform which will give them better results. Both companies also believe that the partnership will help each other get access to a wide variety of banks, financial institutions, and fintech through API (Application Programming Interface).
Yubi - Future Plans
Yubi has launched its first international office to expand its operations in Dubai. It aims to be ubiquitous in the financial ecosystem. Furthermore, the company plans to expand its product portfolio and strives to build a platform to help new people and businesses.
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.