The parent company of Yubi (formerly CredAvenue), Vivitri Capital, is said to have sold a portion of its stake to current users of the online lending marketplace.
According to an ET report, Yubi’s valuation is now around $1.5 billion as a result of the secondary transaction, while Vivitry’s ownership has decreased to under 50%.
In March of last year, Yubi achieved unicorn status and received a valuation of about $1.3 billion as a result of a $137 million Series B round led by Insight Partners, Dragoneer Investment Group, and B Capital Group. It was impossible to determine the investors who took part in the secondary transaction by name.
In 2017, Yubi co-founders Gaurav Kumar and Vineet Sukumar, who are also the creators of Vivitri, launched it. According to media reports, Vivitri owned 50.52% of Yubi, and during the unicorn round, the co-founders each owned more than 15%.
Yubi is also preparing to separate from its parent company Vivitry in the meantime. According to the report, the restructuring process for both entities was started nearly a year ago and is now almost finished in order to separate the lending platform and the NBFC (Non-Banking Financial Company).
The financials for Yubi’s FY23 have not been made public. From just under Rs 25 crore in FY21, its operating revenue increased by 6X to Rs 153 crore in FY22.
According to the CEO of the company, Gaurav Kumar, the topline for the FY23 ended up being Rs 300 crore, representing a 100% annual growth.
In the midst of the ongoing funding crisis, Yubi is one of the few growth-stage startups to see a secondary transaction. The logistics company XpressBees announced a secondary round worth $40 million in April. The business had previously facilitated a secondary transaction in August 2022 for a value of $25 million.