Following a secondary share offering, digital lending platform Yubi, which is about to separate from parent company Vivriti Capital, was valued at $1.5 billion, according to two insiders who spoke to ETtech.
Vivriti Capital, a non-banking financial company with its headquarters in Chennai, now holds just under 50% of Yubi.
A secondary sale occurs when an existing shareholder sells some of his shares, either on the open market or to promoters, to liquidate a portion of his ownership.
According to one of the people, who spoke on the condition of anonymity because regulatory filings have not yet been completed, “the process to restructure the two entities started almost a year ago and is about to get over in order to keep the operations of the platform and the NBFC separate.”
Yubi was valued at $1.5 billion after Vivriti sold some of its shares in accordance with the recast process to current investors. This is more expensive than its previous investment round, which brought in $137 million at a valuation of about $1.2 billion. That round’s 2022 leaders included B Capital Group, Dragoneer Investment Group, and Insight Partners.
Another informed source reported that Yubi had received valuation requests of north of $2 billion from potential investors for a first fund infusion.
The individual clarified, however, that nothing has been decided upon yet. In the upcoming years, the company’s main priorities will be profitability and revenue growth.
About Yubi
Yubi is a composite loan platform that allows banks and NBFCs to connect on one side. On the other side are businesses searching for debt, fintech companies looking for co-lending partnerships, and NBFCs hoping to securitize their assets.
The company reported a total gross merchandise value (GMV) of Rs 72,000 crore at the end of FY23. The total loans made possible by the platform make up Yubi’s GMV.
The company’s topline in FY22 was about Rs 160 crore, but it increased to almost Rs 300 crore in the most recent fiscal year, more than doubling.
In response to questions on the revenue increase, Kumar stated, “We have grown 100% in terms of revenue year over year, and we will close this year with another 100% growth. Both borrowers and lenders pay us; borrowers pay us based on take rates, and lenders pay us based on AUM.
The commission a platform charges to facilitate a loan is known as the take rate. Assets under management, or loans disbursed through Yubi, are referred to as AUM. Yubi currently receives a 46-basis-point commission for each payment.
An interoperable platform called Yubi Credit Marketplace was only recently released by Yubi. According to Kumar, a lender who initially offers retail loans on the platform can easily transition to offering supply chain loans by following a few simple steps. They won’t be limited by one-to-one integrations as a result.
According to Kumar, Yubi’s staff has grown by about 140 new members in the past several months, bringing its total size up from about 1,300 last year to 1,500. The business currently has offices in Gurugram, Bengaluru, Delhi, and Hyderabad, in addition to the recently launched one in Ahmedabad.
