Yubi valuation touches $1.5 Bn after secondary transaction

Vivitri Capital, the parent company of Yubi (formerly CredAvenue), has reportedly sold some part of its shareholding to existing investors of the digital lending platform.

Following the secondary transaction, Yubi’s valuation stands at around $1.5 billion while Vivitry’s stakes have gone under 50%, according to an ET report.

Yubi turned unicorn in March last year and was valued at around $1.3 billion following a $137 million worth of Series B round led by Insight Partners, Dragoneer Investment Group and B Capital Group. The name of investors participating in the secondary transaction couldn’t be ascertained.

Vivitri was launched by Gaurav Kumar and Vineet Sukumar, who are also co-founders of Yubi, in 2017. As per Fintrackr’s estimates, Vivitri had 50.52% holding in Yubi while co-founders held more than 15% stake collectively during the unicorn round.

Yubi declined to comment on the story.

Meanwhile, Yubi is also planning to hive off from its parent entity Vivitry . To separate the lending platform and the NBFC (Non-Banking Financial Company), the restructuring process for both entities was initiated nearly a year ago and is now nearing completion, as per the report.

Yubi has not disclosed its financials for FY23. During FY22, its operating revenue shot up 6X to Rs 153 crore from nearly Rs 25 crore in FY21. As per Fintrackr’s analysis, its losses also soared 8.3X to Rs 55.3 crore in FY22 from Rs 6.65 crore in FY21.

As per the company’s CEO Gaurav Kumar, it closed the last fiscal year (FY23) with Rs 300 crore in topline, achieving a 100% growth on a yearly basis.

Yubi is one of the few growth stage startups that saw secondary transaction amid ongoing funding winter. In April, logistics firm XpressBees announced a $40 million million worth secondary round. The company had earlier facilitated a $25 million worth secondary transaction in August 2022.