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Debt marketplace Yubi rolls out real estate and infra financing platform

Moneycontrol logo Moneycontrol 05-08-2022 Moneycontrol News
Debt marketplace Yubi rolls out real estate and infra financing platform © Moneycontrol Debt marketplace Yubi rolls out real estate and infra financing platform

Debt marketplace Yubi (formerly CredAvenue) has launched its real estate and infrastructure financing platform Yubi Build, the company said on August 4.

Yubi Build will allow for fundraising through loan products for the real estate and infrastructure sectors, such as lease rental discounting, construction finance, inventory funding, and greenfield financing.

Shubham Jain, chief business officer and head of Yubi Build, said that the company aims to sanction loans worth Rs 4,000 crore and add around 2,000 borrowers in this financial year on the platform.

The platform also aims to reduce non-performing assets (NPAs) and bad loans for banks by developing tech-based algorithms.

Jain said, "We are cognisant of the credit gap that exists in the real estate and infrastructure sector and plan to ease access to capital by acting as a fillip for the industry. As we witness the real estate sector bouncing back with surging demand, our technology-first approach will cater to a vast options of products to create a one-stop platform for everything related to finance."

"Yubi Build's business model will be similar to other platforms. Initially, we will look at the 'Issuer Pay Model' and plan on monetising with lenders at a later stage," he added.

The Sequoia Capital-backed company acts as a marketplace to connect enterprises with lenders and investors. It also helps businesses and lenders to access primary as well as secondary bonds.

Currently, the platform has five offerings, besides Yubi Build. The first is Yubi Co.Lend, a co-lending platform for banks and non-banking financial institutions to discover and provide joint loans. Secondly, enterprises looking to seek loans can do so via Yubi Loans and it helps manage repayments too.

The third, and the one that investors are most bullish about, is bond marketplace Yubi Invest, to help enterprises and lenders access primary and secondary bonds.

Its fourth platform Yubi Flow helps secure working capital and cash flow requirements for supply-chain finance. Lastly, its Yubi Pools product provides structured finance options like pass-through certificates and securitisations.

Founded in 2020 by Gaurav Kumar, the company turned unicorn in just 18 months after inception by raising $137 million in a Series B round that valued the firm at $1.3 billion. Yubi's investors include Insight Partners, B Capital Group, Dragoneer, TVS Capital, and Sequoia Capital, among others.

In the past six months the company has made two acquisitions. It acquired Mumbai-based Spocto Solutions, an artificial intelligence and machine learning-powered debt recovery platform, to extend an additional feature to its client banks and institutions besides providing a marketplace.

Yubi had acquired a 75.1 percent stake in Spocto Solutions at a valuation of $46 to $56 million (Rs 350-450 crore).

In April this year, the company acquired a majority stake in Corpository – a full-stack corporate credit underwriting company -- at a valuation of Rs 100 crore.

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