Yubi, India’s leading digital lending platform (formerly known as CredAvenue), is gearing up to raise a fresh funding round in early 2025, as it looks to accelerate its growth and expansion plans. Founder and CEO Gaurav Kumar revealed in an interview with Bloomberg that the startup plans to secure between $150 million and $200 million in capital to fuel its entry into the Middle East and North Africa (MENA) region, as well as to drive further acquisitions.
The new funding will mark a crucial step in Yubi’s ambition to strengthen its position in the global digital lending space. Kumar also hinted that the company may consider going public in the coming years after completing this funding round. “We will raise one more funding round before thinking of going public in the next few years,” he said.
Founded in 2017 as CredAvenue and rebranded to Yubi in 2020, the platform connects enterprises with lenders and investors, facilitating end-to-end solutions across the debt lifecycle. The company offers a range of services including tech infrastructure, risk evaluation, and collections platforms, aiming to simplify and streamline the borrowing and lending process for businesses and investors alike.
Improved Financial Performance Amid Expansion
Despite the challenges posed by the global economic slowdown, Yubi has shown strong progress in its financials. In the fiscal year 2023-24 (FY24), the company reduced its net loss by over 22%, cutting it down to INR 395.8 crore from INR 509.8 crore in FY23. The reduction in losses was accompanied by a significant 47% increase in revenue from operations, which rose to INR 483.7 crore during the same period.
Yubi has already made a significant impact on the Indian debt market, having facilitated over INR 1.4 lakh crore in debt volumes. The platform currently serves more than 17,000 enterprises and 6,200 investors and lenders. The growth in both debt volumes and revenue highlights the increasing demand for Yubi’s solutions in the corporate lending space.
Expanding into MENA and Targeting Strategic Acquisitions
As part of its aggressive growth strategy, Yubi is targeting the MENA region, which has seen a rise in demand for digital lending solutions. The region’s growing fintech ecosystem, combined with Yubi’s ability to leverage its technology stack and infrastructure, presents a significant opportunity for expansion. Kumar’s plans also include the acquisition of other businesses that can help Yubi expand its capabilities and reach.
The platform is also looking to enhance its offerings and bolster its international footprint through strategic mergers and acquisitions. While Yubi has declined to provide further details on specific acquisition targets, it has made it clear that these moves will complement its core business and aid in scaling operations both in India and abroad.
Strong Investor Backing and Fundraising Track Record
Yubi has managed to raise approximately $256.80 million in funding to date from high-profile investors including Peak XV (formerly Sequoia Capital India), Lightspeed, Lightrock, TVS Capital, B Capital Group, Dragoneer Investment Group, and Insight Partners, among others. The company’s strong investor base is a testament to the confidence that stakeholders have in Yubi’s business model and growth potential.
As Yubi prepares for its next fundraising round, the company is in a strong position to capitalize on the growing demand for digital lending platforms, particularly in emerging markets where access to credit remains limited.
