Yubi calls itself the operating system for India’s debt market — the plumbing that lets banks, NBFCs, bond investors and the enterprises that need to borrow find each other without the weeks of paperwork a bilateral loan usually takes. In FY25, the most recent full year it has reported, revenue rose 36% to Rs 660 crore ($68.8 million, at $1 ≈ ₹96.0), and the company still lost Rs 416 crore, 5% more than the year before.
The bigger contradiction sits in the valuation line. Yubi is still called a $1.5 billion unicorn, but that number comes from a single existing shareholder selling down its stake in mid-2023, not from a new investor writing a fresh primary cheque. No institutional investor has priced a new round into Yubi since March 2022, when it turned unicorn at $1.3 billion. A planned $150–200 million raise flagged for the first quarter of 2025 did not close, as per Inc42’s reporting. Instead, the two biggest capital infusions since then have come from the same person: founder and CEO Gaurav Kumar, who has personally put more than Rs 330 crore of his own money into the company across FY24 and FY25.
Quick facts
| Company | Yubi (formerly CredAvenue) |
| Founded | August 2020, Chennai — spun out of Vivriti Capital, which Gaurav Kumar co-founded in 2017 |
| Founder(s) | Gaurav Kumar and Vineet Sukumar |
| Businesses | Debt marketplace and co-lending (YubiCo.Lend), securitisation (YubiPools), bond investing (Aspero), AI-led collections (spocto) |
| Latest FY revenue | Rs 660 crore in FY25, up 36% year-on-year |
| Latest FY profit/loss | Net loss of Rs 416 crore in FY25, up 5% year-on-year |
| Listed | Private; founder Gaurav Kumar has said the company plans one more funding round before considering an IPO |
| Market value / last valuation | $1.5 billion, per a July 2023 secondary share sale; last primary round was $1.3 billion in March 2022 |
| Key shareholders / CEO | Gaurav Kumar (founder-CEO); institutional backers include Insight Partners, B Capital, Dragoneer, Sequoia Capital India, Lightspeed, TVS Capital, Lightrock and EvolutionX Debt Capital |
What they do
Yubi runs a set of connected marketplaces that sit between people who need debt capital and people who supply it. On one side are enterprises and mid-market companies that need a term loan, working capital, trade finance or a bond issue. On the other are banks, NBFCs, mutual funds, family offices and retail bond buyers who want to lend or invest. Yubi’s platforms — a corporate debt marketplace, a co-lending exchange, a securitisation management system and a bond-investing app — try to compress the months a bilateral debt deal usually takes into days, by digitising origination, due diligence, documentation, disbursal and collections. As per company-stated figures reported by Inc42 in November 2024, Yubi has facilitated more than Rs 1,40,000 crore in debt volumes since inception, across more than 17,000 enterprises and over 6,200 lenders and investors.
The origin
Gaurav Kumar spent close to a decade, from 2008 to 2017, as a founding member and chief business officer at Northern Arc Capital (then IFMR Capital), a Chennai-based structured finance NBFC built to channel institutional money into small lenders serving financially excluded borrowers, according to career details reported by Clay’s founder dossier. That job put him on both sides of every debt transaction he later tried to digitise: he watched banks and NBFCs strike loan and securitisation deals over email threads, courier packets and manual reconciliations, with every step re-negotiated each time. In 2017, Kumar and Vineet Sukumar co-founded Vivriti Capital, a mid-market NBFC built on the same underwriting playbook. CredAvenue, incorporated in August 2020 and later renamed Yubi, was the technology layer spun out of that experience — a platform meant to standardise and digitise the entire debt lifecycle rather than originate loans off just one balance sheet, as described in reporting by TechCrunch and Business Today.
The struggle years
CredAvenue launched in August 2020, in the middle of the COVID-19 pandemic, at almost the worst possible moment for a business betting on securitisation and structured debt. Banks and NBFCs, already cautious after the IL&FS and DHFL defaults of 2018–19 had frozen wholesale funding for non-bank lenders, pulled back further during the pandemic, and the securitised-debt segment CredAvenue wanted to digitise went quiet; Kumar told the press at the time that he expected the segment to recover, per contemporaneous coverage of the company’s early fundraising. The company has also never posted a profit in any year it has publicly disclosed: audited numbers reported by Entrackr in November 2024 show a net loss of Rs 509.83 crore on revenue of Rs 327.57 crore in FY23, a year in which losses ran to roughly 1.5 times revenue. Even after two years of cutting the loss down — to Rs 395.8 crore in FY24 and, on paper, further to an improved adjusted-EBITDA loss in FY25 — the headline net loss actually widened again in FY25, to Rs 416 crore, as the company kept spending on headcount, IT infrastructure and non-cash ESOP charges (Rs 160 crore of the FY25 employee cost of Rs 439 crore was ESOP expense, per Entrackr’s October 2025 reporting). A fresh primary funding round that Kumar told Inc42 he wanted to close in the first quarter of 2025, to fund Middle East expansion and acquisitions, did not materialise as disclosed.
The turning point
The clearest before-and-after moment in Yubi’s history is its Series B. In September 2021, CredAvenue had closed what was then reported as India’s largest Series A round, $90 million led by Sequoia Capital India with Lightspeed, TVS Capital, Lightrock and CRED, valuing the company at roughly $410 million, according to Entrackr’s account of the round and shareholding. At that point it had roughly 450 active enterprise borrowers and 750 active lenders on the platform, per TechCrunch. Six months later, in March 2022, CredAvenue raised a $137 million Series B led by Insight Partners, with B Capital Group and Dragoneer Investment Group, at a valuation of $1.3 billion — tripling its valuation inside six months and making it, at roughly 18 months old, one of the fastest Indian startups to reach unicorn status, as reported by both TechCrunch and Business Today. The round also changed what the company was: three months later, in June 2022, it dropped the CredAvenue name for Yubi, signalling a shift from a debt-market niche player to a broader ambition of being infrastructure for all of enterprise credit.
The money behind it
Yubi’s capital stack has three distinct chapters. The venture chapter ran from 2020 to 2022: a Series A of $90 million in September 2021 from Sequoia Capital India, Lightspeed and TVS Capital, followed five months later by the $137 million Series B from Insight Partners, B Capital and Dragoneer that made it a unicorn. By Inc42’s count, cumulative funding stood at about $256.8 million as of December 2024. The secondary chapter came in July 2023, when parent entity Vivriti Capital sold down part of its Yubi shareholding to existing investors in a transaction that valued the company at $1.5 billion, part of a formal separation of the Yubi lending-marketplace business from Vivriti’s own NBFC operations — reported independently and consistently by both Inc42 and Entrackr in July 2023. The founder chapter has run since August 2024: Kumar invested Rs 250 crore of his own money into the company that month, as reported by Business Today, and in November 2025 put in a further Rs 75 crore alongside Rs 336 crore of structured debt from EvolutionX Debt Capital, taking his cumulative personal investment past Rs 330 crore, according to Outlook Business’s coverage of that raise. The stated purpose of the November 2025 capital was expansion into Southeast Asia and the United States, deeper Middle East operations, and investment in the company’s AI product suite.
How it makes money
Yubi earns fees rather than interest margin — it is a marketplace and technology layer, not a lender on its own book, though its collections and bond-distribution subsidiaries touch money more directly. Entrackr’s breakdown of FY25 operating revenue of Rs 660 crore shows transaction fees as the largest line at Rs 318 crore, or 48% of the total, up 55% year-on-year — this is what Yubi earns for originating and executing debt deals on its marketplaces, including co-lending arrangements between banks and NBFCs. Collection services, run through its spocto and spoctoX units, brought in Rs 181 crore; platform services (subscription and SaaS-style access fees) added Rs 98 crore; a corporate database and credit-information product contributed Rs 66 crore; and interest on bank deposits made up the remaining Rs 53 crore. The part outsiders tend to get wrong is assuming Yubi carries credit risk the way a lender does: its core marketplace revenue is a fee on facilitated volume, so it is exposed to how much debt gets originated through its pipes, not directly to whether individual borrowers default — though its collections business is paid to manage exactly that risk on behalf of lenders. On the cost side, Yubi is a people- and technology-heavy business: employee costs of Rs 439 crore consumed roughly 40% of FY25 total expenditure of Rs 1,116 crore, including a Rs 160 crore non-cash ESOP charge, with IT costs of Rs 103 crore and sales and marketing spend of just Rs 32 crore, according to Entrackr.
The numbers
| Metric (Rs crore) | FY23 | FY24 | FY25 |
| Operating revenue | 327.57 | 483.70 | 660.00 |
| Revenue growth (YoY) | — | 47.6% | 36.0% |
| Net loss | 509.83 | 395.80 | 416.00 |
| Total expenditure | — | 938.82 | 1,116.00 |
Yubi has cut its loss-to-revenue ratio sharply since FY23, when it lost roughly Rs 1.56 for every rupee of revenue; by FY25 that had improved to about Rs 0.63 lost per rupee earned. But the net loss line itself moved the wrong way in the most recent year on record, widening 5% even as revenue grew 36%, because total expenditure grew faster than operating income once the FY25 ESOP charge and rising IT spend are counted in, per Entrackr’s FY25 reporting. The company points instead to adjusted EBITDA, which it says improved 55% to a loss of Rs 68.83 crore in FY25 from a loss of about Rs 155 crore in FY24 — a measure that strips out the ESOP and depreciation charges dragging on the statutory net loss.
Where the money comes from
Nearly half of Yubi’s operating revenue now comes from one line — transaction fees on debt origination and co-lending, at 48% of FY25 revenue and the fastest-growing segment, up 55% year-on-year, per Entrackr. Collections (27% of revenue) is the second pillar, run through spocto, which Yubi bought a 75.1% stake in during February 2022 and later expanded into the UAE as a base for the company’s wider Middle East push, according to Entrepreneur Middle East’s coverage of that expansion. The surprise sits not in the product mix but in the geography of who is actually borrowing through Yubi’s rails: a company-published report covered by Business Standard in May 2025 found that 79% of loans facilitated through its partnership and co-lending platform now reach borrowers in Tier 2 and Tier 3 cities, not the metro corporates the marketplace was originally built to serve. A business that started by digitising large, institutional debt deals is now, by its own disclosed data, mostly a pipe for credit into smaller Indian towns.
The risks
The first risk is capital dependency without a fresh institutional mark. Since the $1.3 billion Series B in March 2022, the company’s only movement on valuation has been a secondary sale by an existing shareholder, and its two largest capital infusions since FY24 have come from its own founder rather than a new venture or growth investor — a pattern that raises the question of whether outside investors are currently willing to price a new round at or above $1.5 billion. The second is regulatory: Yubi’s co-lending and default-loss-guarantee arrangements sit squarely inside the RBI’s evolving digital lending framework, which since June 2023 has capped default loss guarantee cover at 5% of a lending service provider’s loan portfolio and tightened who can offer such guarantees, rules later folded into the RBI’s consolidated Digital Lending Directions of 2025, per legal analysis published by AMSShardul Amarchand Mangaldas. Any further tightening of how loan service providers like Yubi can structure risk-sharing with banks and NBFCs would hit the mechanics of its largest revenue line directly. The third is cyclicality: because transaction fees are earned on the volume of debt originated through its marketplace, Yubi’s core revenue rises and falls with how willing Indian banks and NBFCs are to lend — a willingness that collapsed after the IL&FS and DHFL defaults of 2018–19 and again during the pandemic, the exact conditions the company was contending with in its first two years.
The takeaway
Yubi’s story is a reminder that a unicorn valuation is a moment, not a state — the $1.3 billion mark from March 2022 has never actually been repriced upward by a new investor; everything since has been a secondary sale, structured debt or the founder’s own money. A marketplace can look asset-light and scale its top line by double digits every year, as Yubi’s transaction-fee revenue has, while still not being able to convert that growth into a smaller loss, because headcount, technology and non-cash compensation costs scale alongside it. The lesson transfers beyond fintech: revenue growth and loss reduction are two different achievements, and a business can keep winning the first while losing ground on the second.
Frequently asked questions
What does Yubi do?
Yubi runs a set of online marketplaces that connect enterprises needing debt capital with banks, NBFCs, bond investors and other lenders, covering loan origination, co-lending, securitisation and, through its spocto unit, AI-driven loan collections.
Is Yubi profitable?
No. Yubi reported a net loss of Rs 416 crore in FY25 on revenue of Rs 660 crore, having lost Rs 395.8 crore in FY24 and Rs 509.83 crore in FY23, according to financials reported by Entrackr. The company says its adjusted EBITDA loss narrowed 55% in FY25.
What is Yubi’s current valuation?
Yubi is commonly valued at $1.5 billion, based on a July 2023 secondary share sale in which parent Vivriti Capital sold down its stake, reported independently by Inc42 and Entrackr. Its last primary funding round valued it at $1.3 billion in March 2022.
Who founded Yubi and when?
Yubi was founded as CredAvenue in August 2020 in Chennai by Gaurav Kumar and Vineet Sukumar, who had earlier co-founded the NBFC Vivriti Capital in 2017. It was renamed Yubi in June 2022.
Is Yubi planning an IPO?
Founder Gaurav Kumar has said Yubi intends to raise one more private funding round before considering a public listing, as reported by Inc42 in November 2024; no IPO timeline has been disclosed.
Sources
Figures are as of September 2026. Currency converted at $1 ≈ ₹96.0 as of 18 September 2026 (Trading Economics).
- TechCrunch, “Indian fintech CredAvenue turns unicorn with fresh $137 million funding,” March 2022
- Business Today, “Fintech unicorn Yubi bags Rs 250 crore from founder and CEO Gaurav Kumar,” August 2024
- Business Today, “Debt marketplace start up CredAvenue rebrands itself to Yubi,” June 2022
- Entrackr, “Decoding CredAvenue’s $90 Mn Series A round and shareholding,” October 2021
- Entrackr, “Yubi valuation touches $1.5 Bn after secondary transaction,” July 2023
- Inc42, “Fintech Unicorn Yubi Valued At $1.5 Bn In Secondary Share Sale,” July 2023
- Entrackr, “Yubi revenue grows 47% to Rs 484 Cr in FY24, losses down 22%,” November 2024
- Entrackr, “Yubi records Rs 660 Cr revenue in FY25; adjusted EBITDA improves 55%,” October 2025
- Inc42, “Yubi’s FY25 Net Loss Rises 5% To INR 416 Cr Despite 36% Revenue Uptick,” October 2025
- Inc42, “Yubi Eyes $200 Mn Funding In Q1 2025,” November 2024
- Outlook Business, “Yubi Raises Rs 411 Crore via EvolutionX Debt & Founder Equity to Fuel Global AI-Fintech Expansion,” November 2025
- Entrepreneur Middle East, “India-Headquartered Spocto Expands Into The UAE To Further The Global Ambitions Of Its Parent Company, Yubi”
- Business Standard / ANI, “Yubi’s Report Reveals 79% of Loans Now Reach Tier 2/3 Cities as Partnership Lending Booms,” May 2025
- Shardul Amarchand Mangaldas & Co, “Guidelines on default loss guarantee in digital lending: First impressions and questions,” June 2023
- Clay, founder dossier on Gaurav Kumar (career background at Northern Arc Capital and Vivriti Capital)
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