Fintech unicorn Yubi partners with U Gro Capital to address MSMEs' financial needs

Online debt marketplace Yubi (formerly CredAvenue) announced a partnership with BSE-listed MSME lending platform, U Gro Capital. The partnership will see the integration of Yubi Co.Lend (co-lending platform) and Yubi Flow (supply chain financing platform) with GRO–Xstream (BFSI-led channel) and GRO–Line (supply chain finance) platforms, respectively.

According to the fintech unicorn, the partnership will enable U GRO Capital to leverage Yubi’s full-stack operating system to seamlessly discover, go live, and collaborate with multiple partners on the latter's platform.

Commenting on the partnership, Gaurav Kumar, Founder, and CEO of Yubi, said: “We, at Yubi, are working towards accelerating financial inclusion in the country through a technology-driven credit infrastructure that powers discovery, execution, and fulfilment."

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This alliance will also help U GRO Capital access Yubi Co.Lend’s network of banks, financial institutions, and fintech via a single API (Application Programming Interface) integration to extend and accelerate credit to the underserved sectors in the country. The long-term aim of both entities is to solve the financial challenges faced by MSMEs by building deep expertise in the sector coupled with a data-centric and technology-enabled approach.

“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," said Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital.

The co-lending or co-origination initiated by RBI provides a framework for collaboration between two financial institutions—such as a bank and an NBFC (Non-Banking Financial Institution)—to jointly finance the customer’s needs. Yubi stated that with the low-cost funds of a bank and the on-ground capabilities of an NBFC in sourcing and servicing, the alliance leverages the strengths of both the lenders, making this a winning proposition for all the stakeholders.

(The story was updated to correct Yubi Flow's area of operation.)