The unicorn in digital lending, Yubi, originally CredAvenue, is aiming for a significant fundraising round in early 2025. To support its goals, which include a wave of strategic acquisitions and expansion into the Middle East and North Africa (MENA) area, the company intends to raise $150–200 million. Only three months have passed since Gaurav Kumar, the company’s founder and CEO, personally invested ₹250 crore, or around $30 million, in the venture.
Kumar stressed the significance of the next investment round as a first step toward the company’s eventual public offering in a Bloomberg interview. His statement, “We will raise one more funding round before thinking of going public,” indicated Yubi’s goal of reaching new heights.
Credits: Inc 42
Strengthening Financial Foundations
Yubi’s financial performance has shown marked improvement, setting the stage for this ambitious expansion. The company’s revenue from operations surged by an impressive 47% in FY24, reaching ₹483.7 crore. Meanwhile, it successfully reduced net losses by over 22%, narrowing them to ₹395.8 crore from ₹509.8 crore in FY23.
This financial turnaround is attributed to operational efficiencies and a growing demand for Yubi’s debt lifecycle solutions. The startup provides tech infrastructure, risk evaluation, and collections platforms to facilitate seamless interactions between lenders and borrowers.
Revolutionizing Debt Market Operations
Founded in 2017 as CredAvenue and rebranded as Yubi in 2020, the startup has carved a niche for itself as a comprehensive debt marketplace. Yubi connects enterprises with lenders and investors, offering end-to-end solutions for the debt lifecycle.
The platform has facilitated over ₹1.4 lakh crore in debt transactions and boasts a robust ecosystem comprising more than 17,000 enterprises and 6,200 investors and lenders. Yubi’s services include:
Tech Infrastructure: Streamlining debt processes for enterprises.
Risk Evaluation: Helping lenders assess creditworthiness.
Collections Platforms: Assisting in efficient recovery of dues.
This wide-ranging expertise has made Yubi a critical player in India’s fintech landscape.
Global Expansion and MENA Focus
Yubi’s intended entry into the MENA region will be greatly aided by the new funding. The company’s plan to diversify its revenue sources and enter new markets is in line with this expansion. With its quickly modernizing economy and rising need for financial solutions, MENA offers Yubi’s products a significant market opportunity.
Yubi intends to expand geographically as well as by acquiring complementary companies that will strengthen its technological prowess and improve its market position.
Backed by Top-Tier Investors
Yubi’s growth story has been fueled by backing from prominent investors, including Peak XV Partners, Lightspeed, Lightrock, TVS Capital, B Capital Group, Dragoneer Investment Group, and Insight Partners. Together, they have collectively infused approximately $256.80 million into the company to date.
This strong backing underscores confidence in Yubi’s business model and its ability to disrupt the debt market.
On the Path to IPO
While Yubi’s IPO timeline remains undisclosed, Kumar’s statement indicates that the company is taking deliberate steps toward public listing. The focus on financial discipline, global expansion, and operational scaling suggests that Yubi aims to position itself as a formidable player before hitting the stock market.
An IPO would mark a significant milestone for the company, offering it access to larger capital pools and cementing its leadership in the fintech space.
Credits: Infomance
Conclusion: A Unicorn with Big Dreams
Yubi’s journey from CredAvenue to a leading digital debt platform highlights its ability to innovate and adapt. With a clear focus on expansion, improved financial health, and the upcoming funding round, the startup is poised for remarkable growth.
As Yubi eyes the MENA region and continues to streamline India’s debt markets, all eyes will be on its next moves. Whether it’s the strategic acquisitions or the much-anticipated IPO, Yubi is proving to be a unicorn with big dreams and the determination to achieve them.
