Fintech debt marketplace Yubi on Thursday said it has launched a financing platform focused on the real estate and infrastructure sectors.
The platform - Yubi Build - will help borrowers from the real estate and infrastructure sectors to raise funds through loan products such as lease rental discounting (LRD), construction finance, inventory funding and greenfield financing, it said in a statement.
The platform also seeks to reduce bad loans for banks with the help of its algorithms.
The statement noted that the infrastructure sector is filled with delayed and long-pending projects due to insufficient financing and a lack of technology and the platform aims to address this problem. Small and medium enterprises from smaller regions of the country will also be able to access this platform, it added.
“We are cognizant of the credit gap that exists in the real estate and infra sector and plan to ease access to capital by acting as a fillip for the industry," said Shubham Jain, chief business officer and head, Yubi Build.
"As we witness the real estate sector bouncing back with surging demand, our technology-first approach will cater to a vast option of products to create a one-stop platform for everything related to finance," added Jain.
Yubi, formerly CredAvenue, was founded in August 2020 by Gaurav Kumar. The rebranding to Yubi happened just in June as the company aims to expand into international markets and widen its product portfolio.
The company entered the famed unicorn club of startups in March after it raised $137 million led by New York-based global private equity and venture capital firm Insight Partners, B Capital Group, and Dragoneer, with participation from existing investors. A unicorn is a privately-held startup with a valuation of at least $1 billion.
Prior to this funding round, Yubi racked up $90 million in a funding round led by Sequoia Capital in September last year in the biggest Series A investment for an Indian company at that time.
Yubi has also been active on the acquisition front. In February, VCCircle reported that Yubi had acquired a 75% stake in Mumbai-based Spocto Solutions Pvt. Ltd, a collections solution provider in the debt management space.
In April, Yubi made its second acquisition in software-as-a-service (SaaS)-based credit underwriting company, Corpository for Rs 100 crore.
