Yubi: Building India’s Largest Credit Infrastructure Platform

Author: Aditya Pareek | EQMint

Company History

Yubi, formerly known as CredAvenue, was founded in 2020 with a mission to simplify and digitize India’s corporate debt and credit ecosystem. India’s credit markets, particularly debt financing, have traditionally been fragmented, paper-heavy, and dominated by a few large players. Yubi set out to change that by building a digital infrastructure for credit discovery, underwriting, and investments.

The company rebranded to Yubi in 2022 to reflect its broader vision of creating a unified platform for all forms of debt financing, ranging from loans and supply-chain financing to securitization and co-lending.

Within just two years, it scaled rapidly, connecting enterprises, financial institutions, banks, NBFCs, and investors on a single platform. Its early success was powered by large-scale digitization in India’s financial services sector and the need for innovative credit solutions post-pandemic.

In March 2022, Yubi entered the unicorn club, raising $137 million in a Series B round led by Insight Partners, B Capital Group, and Dragoneer, valuing the company at $1.3 billion. This achievement made it one of the fastest fintech unicorns in India.

Today, the company manages over $90 billion in credit volumes, working with 5,000+ corporate borrowers, 750+ lenders, and 1,500+ investors. It has emerged as India’s leading credit marketplace and is positioning itself as a global credit infrastructure powerhouse.

Founders

Yubi was founded by Gaurav Kumar, a seasoned entrepreneur with deep experience in the financial services sector. Before Yubi, Kumar co-founded Vivriti Capital, a fintech NBFC that focused on lending to mid-market enterprises. His understanding of credit markets and gaps in debt financing inspired him to create Yubi.

Under his leadership, Yubi has built a strong management team comprising experts in technology, finance, compliance, and risk management, ensuring the platform’s credibility in India’s highly regulated financial ecosystem.

Business Model

Yubi operates as a credit infrastructure platform, connecting borrowers and lenders across multiple financial products. Its business model includes:

Credit Marketplace

Yubi acts as a marketplace where enterprises can access debt from multiple banks, NBFCs, and investors.

It helps borrowers compare terms, secure loans, and reduce dependence on traditional banking relationships.

Securitization & Co-Lending

Through Yubi’s platform, financial institutions can co-lend, pool loans, or securitize assets to diversify risk.

This enables lenders to expand reach and investors to access new asset classes.

Supply Chain Financing

Yubi enables corporates to finance their vendors and distributors, improving liquidity across value chains.

SMEs benefit from faster access to working capital at competitive rates.

Structured Credit & Bonds

Enterprises can raise funds via structured debt instruments, bonds, or alternative financing structures.

Investors gain access to curated opportunities with real-time data and risk assessment.

Technology & Data Infrastructure

The platform leverages AI, machine learning, and alternative data for underwriting, credit scoring, and risk monitoring.

APIs and integrations allow seamless onboarding for banks and enterprises.

Revenue Streams

Transaction fees from facilitating credit deals.

SaaS-based revenue from providing risk management and compliance tools.

Subscription-based premium services for lenders and investors.

Current Competitors

Yubi operates in a growing fintech space with competitors in different niches:

OfBusiness — Provides B2B commerce and financing to SMEs.

Lendingkart — Focuses on digital SME loans.

Aye Finance, NeoGrowth — NBFCs offering SME lending solutions.

ClearTax (via ClearInvoice) — Competes in supply-chain financing.

Banks and NBFCs — Traditional institutions still dominate India’s credit market.

International players — Platforms like CredAvenue’s global analogs (Kabbage, Funding Circle) offer similar models abroad.

While competition is stiff, Yubi’s positioning as a comprehensive infrastructure provider (not just a lending app) makes it unique.

Challenges & Risks

Yubi’s growth trajectory is promising, but it faces key challenges:

Credit risk: As a platform dealing with debt, defaults and delinquencies by borrowers can affect lender confidence.

Regulatory scrutiny: Operating in India’s financial sector means strict compliance with RBI guidelines and data security norms.

Competition from banks: Banks themselves may digitize their processes, reducing reliance on third-party platforms.

Profitability pressures: Building scale and technology infrastructure requires heavy capital, and margins in lending facilitation are thin.

Trust building: Large institutions may be slow to trust newer fintechs with sensitive credit operations.

Economic cycles: Slowdowns or credit crises can sharply affect volumes.

Future Outlook

Yubi is aiming to become India’s central infrastructure for debt markets. Its roadmap includes:

Expanding credit products to cover everything from SME loans to green bonds.

Building stronger partnerships with global investors to bring foreign capital into India’s debt markets.

Deepening AI-driven credit scoring to underwrite borrowers with limited history.

Offering SaaS platforms for compliance, loan management, and monitoring to banks.

Scaling beyond India to other emerging markets in Asia and Africa.

Exploring IPO plans in the next few years as the company scales its credit volumes further.

If successful, Yubi could play the same role in debt markets that NSE or UPI played in equities and payments — acting as the backbone of digital credit infrastructure in India.

References

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.