Fintech Unicorn Yubi Raises INR 411 Cr To Expand Overseas

Fintech unicorn Yubi (erstwhile CredAvenue) has secured INR 411 Cr (about $46.4 Mn) in its latest funding round, comprising INR 336 Cr (about $37.9 Mn) in debt from EvolutionX Debt Capital and INR 75 Cr (about $8.5 Mn) in equity investment from founder and CEO Gaurav Kumar. 

The fresh proceeds will be deployed to support Yubi’s international expansion into overseas markets such as Southeast Asia, the US, and the Middle East. Further, the startup plans to infuse the investment into developing its proprietary AI products. 

“The funds will enable us to replicate our Indian success story in new international markets, supercharge our AI stack, and strategically expand our ecosystem,” Kumar said in a statement. 

Important to mention that this marks the second instance where the startup’s founder has doubled down on his equity investments in Yubi in recent times. In August 2024, Kumar made an INR 250 Cr equity capital infusion in the startup.

Last year, Kumar also shared that the Yubi’s plans to raise fresh capital in the range of $150 Mn to $200 Mn in the first quarter of 2025. However, that investment didn’t materialise as per plans.

Founded in 2020 by Kumar, Yubi Group builds technology for the entire debt-lifecycle — it connects businesses with lenders, handles credit underwriting, helps raise bonds and automates debt collections. The digital lending startup caters to different facets associated with the debt cycle via its offerings like —

Yubi Loans: A digital marketplace that helps companies find and get loans quickly by connecting them with multiple banks and NBFCs. It automates credit evaluation and speeds up disbursements.  

Yubi Flow: A supply chain finance (SCF) platform that offers trade financing solutions to help corporates and lenders manage invoice discounting smoothly.

Aspero: A bond marketplace where companies can raise money via bond issuances.

Yubi Pools: A securitisation platform for structured finance, enabling banks and NBFCs to manage pass-through certificates and asset-backed securities.

YuCollect: A collections platform that unifies lenders and collection agencies, providing real-time tracking, compliance, and automation. 

Accumn: Provides credit underwriting and risk-assessment tools to aid lenders in making faster lending decisions.

In its lifetime, Yubi claims to have facilitated INR 3.2 lakh Cr in transactions and processed over 48 lakh transactions. 

On the financial front, the Chennai-based startups’ net loss widened 5% to INR 416.1 Cr in FY25 from INR 395.8 Cr loss incurred in the previous fiscal year. Meanwhile, the operating revenue zoomed 36% to INR 660.1 Cr from INR 483.7 Cr in FY24. 

Prior to this round, the startup had raised about $227 Mn till date from investors like Peak XV, Lightspeed, Lightrock, TVS Capital, B Capital Group, among others. It entered the unicorn club in March 2022 after raising $137 Mn in its Series B round at a valuation of $1.3 Bn.