Fintech company Yubi bags Rs 411 Cr via debt and equity

Yubi Group has secured over Rs 400 crore in new financing to push deeper into global markets and strengthen its artificial intelligence (AI) products.

The Chennai-based financial services platform raised a total of Rs 411 crore through a mix of long-term structured debt and equity. EvolutionX Debt Capital provided up to Rs 336 crore, while Founder and CEO Gaurav Kumar invested an additional Rs 75 crore, bringing his cumulative equity infusion to over Rs 330 crore.

"The funds will enable us to replicate our Indian success story in new international markets, supercharge our AI stack, and strategically expand our ecosystem," Kumar said in a statement.

Yubi plans to utilise the capital to accelerate its expansion into Southeast Asia and the US, and to build on its existing presence in the Middle East.

EvolutionX Partner Rahul Shah said the lender backed the company because of its scale and economics. "We are impressed by Yubi's transformative impact on the credit ecosystem in India. The company has demonstrated remarkable scale, robust technology, and a clear path to profitability," he said.

Yubi said it has facilitated more than Rs 3.2 lakh crore in debt and supports 17,000 enterprises and nearly 6,200 lenders and investors.

The fintech unicorn provides end-to-end debt lifecycle management products. It claims its services result in a 57% reduction in collections costs.

The company is backed by prominent investors, including Peak XV, Lightspeed, Lightrock, TVS Capital Funds, B Capital Group, Dragoneer Investment Group, and Insight Partners.

Yubi saw its FY25 loss widen 5% to Rs 416.1 crore, even as operating revenue jumped 36% to Rs 660.1 crore. Adjusted EBITDA loss shrank sharply to Rs 69 crore from Rs 155 crore.