Yubi Valued At $1.5 Bn In Secondary Share Sale

SUMMARY

The fintech unicorn, operated by the Chennai-based NBFC Vivriti Capital, is set to separate from its parent entity

The secondary share sale is a result of the restructuring following the separation of Yubi from Vivriti Capital

Yubi has also had some talks with investors for a primary round at a valuation of $2 Bn, though nothing has been finalised

Digital lending unicorn Yubi (formerly CredAvenue) has reportedly commanded a valuation of $1.5 Bn following a secondary share sale.

The fintech unicorn, operated by the Chennai-based non-banking financial company (NBFC) Vivriti Capital, is set to separate from its parent entity. The restructuring process saw Vivriti sell a part of its shareholding in Yubi to existing investors at a valuation of $1.5 Bn.

Vivriti owns just under 50% of Yubi.

According to two people cited in an ET report, the secondary share sale is a result of the restructuring following the separation of Yubi from Vivriti. As per the sources, the process started a year ago and is close to completion.

This is at a premium to its last funding round where it raised $137 Mn at a valuation of around $1.2 Bn. Insight Partners, Dragoneer Investment Group and B Capital Group led the funding round in 2022. Vivriti Capital, too, had raised $30 Mn in a Series C funding round early in 2022, taking its total fundraise to $200 Mn.

The lendingtech unicorn has also had some talks with investors for a primary round at a valuation of $2 Bn, though nothing has been finalised as yet.

Yubi, founded as CredAvenue in 2017 by Gaurav Kumar, is a debt platform that connects enterprises with lenders and investors. Its offerings include CredLoan, CredCoLend, CredPool, Plutus, and CredSCF. In June 2022, CredAvenue rebranded itself to Yubi.

The lendingtech’s restructuring comes after it reported a widening of its net loss to INR 55.3 Cr in the financial year 2021-22 (FY22) from INR 6.6 Cr in the previous fiscal year as the startup’s expenses grew almost six-fold. According to its regulatory filing, the net loss increased despite Yubi’s operating revenue surging over 6X to INR 153.2 Cr in FY22 from INR 24.9 Cr in FY21.

Yubi’s total income for the year stood at INR 165.5 Cr.

The revenue increase was powered by a strong growth in gross merchandise value (GMV), which increased to $3.8 Bn (INR 30,295.3 Cr) in FY22 from $800 Mn (INR 6,377.9 Cr) in FY21.

Yubi has also seen some reshuffling at the top. Its senior vice president of corporate development, Sudha Rangarajan, moved out of the company recently.