Yubi and axio Tie-up to Deepen Co-lending in India and Enhance Financial Inclusion for Underserved Sectors

  • Lending
  • 23.11.2022 09:25 am

Yubi (formerly CredAvenue), the world’s first possibility platform that powers the discovery, execution and fulfilment of credit, and axio (formerly Capital Float), India's leading digital consumer finance company offering pay later, credit and personal finance management announced a strategic partnership, through which axio will leverage Yubi’s co-lending platform to continue expanding its retail credit business. This partnership will facilitate quick and easy credit access to underserved retail customers and self-employed individuals.

Yubi Co.Lend will enable axio to partner with leading banks and NBFCs on its platform, through which axio will continue to build its portfolio via co-lending. Having multiple lenders onboarded onto a single platform, with a single API integration process also has the advantage of providing lending entities with access to a vast network of lenders and borrowers. This reduces the turnaround time of loan disbursals from hours to mere minutes. Yubi’s digital platform allows for scalable co-lending, such that NBFCs can grow without putting pressure on their balance sheets, and help build sustainable businesses.

Gaurav Kumar, Founder & CEO, Yubi, said, “The co-lending model has the potential to optimise the debt leverage in the economy, which at present, is severely underleveraged. Being market leaders in co-lending, we have witnessed its impact first-hand, in being able to deliver access to credit to the priority sectors, while limiting the burden of risk. This partnership with axio will enable us to further this impact by unlocking credit for direct and retail consumers, which will have a compounding effect on access to credit, consumption, and the economy as a whole.”

axio is on a mission to make creditworthy for all by leveraging technology to deliver innovative financial products to millions of individuals across the country. Through this partnership, axio aims to disburse Rs 1,500 crores in co-lent loans over the next 12 months. This would add to axio’s growth trajectory of having tripled its customer base to 6 million in the last 12 months. axio’s annualised disbursals have also tripled over the last year to Rs 5,000 crores.

Sashank Rishyasringa, Co-founder & MD, axio, said, "We are on a mission to make credit good in the country. We recently celebrated the milestone of 6 million credit customers and are on our way to crossing 10 million credit customers by mid-2023. Our partnership with Yubi will further strengthen our desire to democratize credit in India by offering affordable and responsible credit to our customers. We are excited about the possibilities of this alliance, through which we will be growing our co-lending business by 25%.”

Yubi’s Co.Lend is the first and largest digitised co-lending platform in the country that provides an end-to-end co-lending infrastructure. It provides a loan allocation feature which makes it easier for the distribution of originated assets. The model’s emphasis on the affordability of these loans makes it highly scalable and profitable as well. Moreover, Yubi Co.Lend also reduces operational complexities and costs by automating and simplifying audit, compliance and reporting processes, which are traditionally the most time-consuming aspects of the process.

Through Yubi’s marketplace, axio will gain access to a database of private and public sector lenders based on the credit filters on the Yubi platform, which will eventually drive price discovery for the asset classes. The self-service modules will help axio create and display its products on Yubi Co.Lend marketplace, which covers all the product nuances which can be accessed by the lenders for greater transparency in the decision-making process. Further, the platform also has a co-creation module where axio and the lender can co-create the partnership agreement on the platform with minimum intervention.

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