Chennai-based debt marketplace, Yubi (formerly CredAvenue) on Wednesday announced its partnership with small lending platform, U GRO Capital to enable delivery of last-mile credit to the micro, small and medium enterprises (MSMEs) in the country.

Founded in 2020, Yubi facilitates debt financing for enterprises by connecting lenders and investors with corporate borrowers through an online marketplace. Its offerings include YubiLoans (term lending and working capital solutions), YubiCo. Lend (co-lending partnerships for banks, NBFCs), YubiInvest (bond issuance and investment for institutional and retail participants), YubiFlow (trade financing solutions) and YubiPools (end-to-end securitisation and portfolio buyouts).

Via a single API

The partnership will see the integration of Yubi Co.Lend and Yubi Flow with GRO–Xstream and GRO–Line platforms, respectively. As a result, U GRO Capital will gain access to Yubi Co.Lend’s vast network of banks, financial institutions and fintechs via a single API (application programming interface). Through Yubi Flow, U GRO Capital will also be able to finance the credit pipeline to channel partners of anchor corporations. These are essentially MSMEs whose cash flows and working capital will be positively impacted.

Tech-driven credit infra

“We are working towards accelerating financial inclusion in the country through a technology-driven credit infrastructure that powers discovery, execution and fulfilment. We are elated to partner with U GRO Capital with a shared vision to bridge the MSME credit gap in India by providing credit access to the unserved and underserved sectors in the country,” Gaurav Kumar, Founder and CEO of Yubi, was quoted in a press statement.

The release said GRO–Xstream and Yubi Co.Lend will provide MSMEs with financing of more than ₹2,000 crore by March 2023, through various partners on Yubi Co.Lend

“With our data-tech approach, we were able to head-start co-lending partnerships with top national banks. What started as an experiment, co-lending, has gathered momentum and acceptance across the industry. The scale of big banks combined with the agility and reach of nimble partnerships is going to be the bedrock of the transition of the lending industry. With Yubi’s tech-enabled credit infrastructure, we’ll be able to fast-track our initiatives to reach our mission of ‘solving the unsolved’ for the MSMEs,” said Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital, said.

Yubi said its co-lending platform has helped in establishing more than 50 partnerships between originators and banks such as State Bank of India and Yes Bank with more than ₹5,000 crore of disbursements and 80,000 transactions per day in FY22.

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