Debt Marketplace Yubi Partners With Lendingkart For Co-lending To MSMEs
Yubi and Lendingkart have entered into a strategic partnership to collaborate and in the process, empower the priority sector by simplifying access to finance. Lendingkart will use Yubi’s co-lending marketplace, Yubi Co.Lend's network of lenders to disburse joint loans through its non-banking financial company (NBFC), Lendingkart Finance. Additionally, the partnership includes co-origination of loans in a 100:0 model on Lendingkart's SaaS platform, 2gthr, for the MSME sector.
As a result of a dynamic economic environment and rising interest rates on loans, MSMEs are seeking more affordable credit to fuel their growth and expansion plans. Meanwhile, financial institutions are seeking innovative methods to diversify their loan portfolio and expand sustainable lending to the priority sector to keep the economic engines of the country running. Co-lending has become the model of choice because of its dual ability to reduce risk and increase leverage.
The strategic partnership will enable additional disbursement of loans and help cater to the increasing demand from MSMEs in the ecosystem. The partnership will enable last-mile finance and drive financial inclusion with swift and collateral-free loans to eligible MSMEs with disbursals. This will in turn help deepen the debt market by allowing banks and financial institutions to diversify their existing loan book through co-lending.
Commenting on the partnership, Gaurav Kumar, Founder and CEO, Yubi, said, “The Reserve Bank of India's innovation in payments with UPI has been incredible. Similarly, one of its most notable innovations in lending has been co-lending, which has resulted in a notable shift in the ecosystem. To fully leverage this model, it's essential to address the issue of credit access for MSMEs. The solution to this problem lies in making debt accessible to all businesses through technology. It brings me great pleasure to collaborate with Lendingkart, as our combined scale and technological capabilities have the potential to unlock ₹1000 crore worth of credit over the next year. This collaboration will make a significant contribution in bridging the credit gap faced by Indian MSMEs today.”
Commenting on the partnership, Harvardhan Lunia, Co-founder & CEO, Lendingkart said, “MSMEs are poised to play a pivotal role in accelerating growth and power India towards becoming a USD 5 trillion economy. The need to further enhance access to capital is going to be vital to fuel this growth. Over the last few years, Lendingkart has pushed the envelope in digital lending and empowered MSMEs in over 4000+ cities and towns across all states and UTs in the country – we are fully committed to address the emerging needs and proud of partnering with thousands of business owners every single day, by helping them focus on what’s most important – building their businesses, by making access to working capital fast, transparent and unbiased. I’ve always believed that a collaborative approach will enable us to better serve the unbanked and drive greater efficiencies and opportunities. Lendingkart and Yubi have been the cornerstones of digital lending for the last few years in terms of product and tech innovations – and in the process, built platforms that complement each other perfectly. With this partnership and integration of Yubi Co.Lend & Lendingkart 2gthr, I strongly believe our combined capabilities in leveraging technology and data will truly make a difference in providing access to finance to those who need it the most.”
Yubi Co.Lend, India’s largest co-lending platform, recorded a 2.5 times growth in partnerships in FY23 by joining hands with more than 100 partners in this financial year. Some of the major names include State Bank of India, Karnataka Bank, Axis Bank, Kinara Capital and more. With 15+ asset classes, Yubi Co.Lend enables leading banks, NBFCs, and fintech companies to discover each other, partner and drive co-lending adoption, accelerating financial inclusion in the country. In FY24, Yubi aims to scale its co-lending platform further in order to support larger volumes of transactions and provide access to multiple lenders and partners through a single integration approach.
