Yubi's FY25 Net Loss Rises 5% To INR 416 Cr Despite 36% Revenue Uptick

SUMMARY

The startup’s losses widened by 5% to INR 416.1 Cr in the financial year ending March 2025, from INR 395.8 Cr in the previous year

Including other income of INR 53.2 Cr, Yubi’s total income rose 27% YoY to INR 713.4 Cr in FY25

Total expenses for the year surged 18.9% to INR 1,116.3 Cr in FY25 against INR 938.8 Cr a year ago

Fintech unicorn Yubi (erstwhile known as CredAvenue) net loss for the fiscal year FY25 widened about 5% to INR 416.1 Cr from INR 395.8 Cr loss incurred in the previous fiscal year.

In a statement, the startup noted that the net loss included significant non-cash items such as depreciation and ESOP-related expenses.The startup’s adjusted EBITDA loss declined 55% to INR 69 Cr from INR 155 Cr loss incurred in the previous fiscal.

While the digital lending startup saw an increase in its losses in the fiscal year, it saw a hefty uptick in its top line. Yubi’s operating revenue zoomed 36% to INR 660.1 Cr from INR 483.7 Cr in FY24. The growth was driven by an increase in adoption of its lending enablement and debt marketplace platforms.

Including other income of INR 53.2 Cr, Yubi’s total income rose 27% YoY to INR 713.4 Cr in FY25 from INR 561.8 Cr in the previous year.

Founded in 2020 by Gaurav Kumar, Yubi acts as a digital marketplace for borrowing and lending money between institutions. Its fintech platform connects banks, lenders, and businesses to make it easier to give and get loans.

“FY25 was a year of strong operational and financial progress for Yubi Group. This performance reflects disciplined execution, strong operating leverage, and deepening adoption of our technology across all key verticals – lending tech, collection tech and wealth tech,” the startup said in a statement.

In FY25, Yubi facilitated loan disbursements of INR 22,600 Cr through its platform. Its Partnership Lending Report FY25 shows INR 46,904 Cr in Direct Assignments and INR 5,335 Cr in Pass-Through Certificates executed during the year.

Around 79% of loans processed were directed to Tier 2 and Tier 3 cities. The startup’s operations included AI-driven debt management tools and digital infrastructure supporting lending and securitisation processes.

Yubi operates multiple subsidiaries under its group structure, including spoctoX and Aspero. spoctoX is an AI-powered debt support and risk management platform that helps banks and NBFCs streamline and optimise their debt recovery processes. It acquired two companies, Corpository and Finfort and consolidated them under one brand, Accumn, which is a unified stack for data-driven intelligence for risk assessment and underwriting.

In a statement, the startup claimed that its lending tech platform now facilitated 80,000 loan transactions per day, and its collection tech platform (Spocto X) processes over $800 Mn in retail loan collections monthly. The wealth tech (Aspero) also holds a 26% market share in listed bond trade volumes.

During the fiscal year, founder Kumar invested INR 250 crore ($30 Mn) to support Yubi’s expansion into the MENA region and fund potential acquisitions. The startup had planned to raise an additional $150–200 Mn in early 2025, but the funding round appears not to have materialised, as no disclosures were made by the startup.

The startup has 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.

Breaking Down Yubi’s FY25 Expenses

The fintech unicorn’s total expenses for the fiscal year increased 19% to INR 1,116.3 Cr from INR 938.8 Cr spent in FY24.

Employee Benefit Expense: Spending under this head rose 15.5% to INR 438.7 Cr in FY25 from INR 379.9 Cr in the previous fiscal year, reflecting increased hiring and retention costs. Of this, INR 160 Cr under share-based compensation represents the fair value of Employee Stock Options (ESOPs) granted to employees.

Depreciation and Amortisation Expense: This cost increased 33% to INR 177.7 Cr in FY25, compared to INR 134.0 Cr in FY24. Out of this, INR 133.5 Cr expense was made under amortisation related to internally generated intangible assets (software and technology development).

Finance Cost: Finance expenses climbed 39% to INR 27.4 Cr in FY25 from INR 19.7 Cr in the previous fiscal year.

Other Expenses: Other operating expenses rose 17% to INR 472.5 Cr from INR 405.1 Cr in the previous year.

[Editor’s note: The story has been edited to incorporate comments from Yubi]