Insight Partners-Backed India Fintech Yubi Plans New Fundraising

Indian fintech platform Yubi is looking to raise up to $200 million early next year to finance its global expansion, as the company embarks on a new funding round after narrowing its losses.

The firm, backed by venture capital funds from Insight Partners to Peak XV, will look to raise between $150 million and $200 million in the first quarter of next year, Chief Executive Officer Gaurav Kumar said in an interview. 

“We will raise one more funding round before thinking of going public in the next few years,” said Kumar, who injected $30 million of his own capital into the business in August. A large portion of the fresh funds will be used for expansion, specifically in the Middle East and North Africa region, as well as on acquisitions, Kumar said.

Founded in 2020 and formerly known as CredAvenue Pvt., Yubi is capitalising on the growing debt market in India. The firm provides services on financing, debt restructuring, risk evaluation and debt collection. The country’s consumption and investment demand has been gaining momentum, with bank lending up 11.5% year-on-year as of Oct. 18, according to data from the Reserve Bank of India.

Yubi’s operating revenue grew 48% in the year ended March to 4.8 billion rupees ($57 million), according to company filings. The sales growth helped the company narrow its loss by 22% to 3.9 billion rupees, the filings showed.

Rising delinquencies in retail loans at banks and shadow lenders have boosted revenues for Yubi’s debt collection platform Spocto, whose monthly average customers have almost quadrupled from an average of 5 million in fiscal 2024 to 18 million presently, according to Karan Shah, head of growth at Yubi Securities and Spocto.

Currently valued at $1.5 billion, Yubi entered the unicorn club in 2022, after raising $137 million in a round led by Insight Partners, B Capital and Dragoneer.