U Gro ties up with Unicorn Yubi to share platform for co-lending

Mumbai: U Gro Capital has partnered with fintech unicorn Yubi to use the latter's platform to route its co-lending disbursals, which it does for the likes of State Bank of India, Bank of Baroda and other lenders.

The digital lender, focused on the micro, small and medium enterprise (MSME) sector, aims to disburse loans worth about ₹2,000 crore this fiscal year through this tie-up.

The platform created by Yubi (formerly CredAvenue) has so far serviced ₹5,000 crore of co-lending loans and ₹1,600 crore of supply chain finance.

"We are aiming to bridge the MSME credit gap in India; the partnership will create one of the largest co-lending partnerships, and we aim to disburse loans valuing over ₹2,000 crore by March 2023," said Shachindra Nath, managing director of U Gro Capital.

U Gro Capital has crossed an AUM of ₹3,650 crore and also recorded the highest disbursal figure of ₹1,359 crore in the June quarter.

The company has signed 18 co-lending partnerships, including with SBI, Bank of Baroda, ICICI Bank, and IDBI Bank.

"Through this alliance, U Gro Capital will gain access to Yubi Co.Lend's vast network of banks, financial institutions and fintechs via a single API (Application Programming Interface) integration to provide credit to the underserved sectors in the country," said Irfan Mohammed, chief business officer, Yubi.

Sequoia-backed Yubi is a Chennai-based fintech player that facilitates debt financing by connecting lenders and investors with borrowers through an online marketplace. It has tied up with over 240 co-lending partners and 500 lenders.