Yubi partners with U GRO Capital for co-lending and supply chain financing

CHENNAI: Yubi, on Wednesday, announced its latest partnership with U GRO which will see the integration of Yubi Co.Lend and Yubi Flow with GRO–Xstream and GRO–Line platforms, respectively. As a result of this double partnership, U GRO Capital will be able to leverage Yubi’s full stack operating system to discover, go live and collaborate with multiple partners on Yubi’s platform.

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 extend and accelerate credit to the underserved sectors in the country. A shared mission of Yubi and U GRO Capital is to solve the financial challenges faced by MSMEs by building deep expertise in the sector coupled with a data-centric, technology-enabled approach. Through Yubi Flow, U GRO Capital will be able to finance the credit pipeline to channel partners of anchor corporations. These are essentially MSMEs whose cash flows and working capital will be positively impacted.

Gaurav Kumar, Founder and CEO of Yubi, said in a statement,“We, at Yubi, are working towards accelerating financial inclusion in the country through a technology-driven credit infrastructure that powers discovery, execution and fulfilment. We are elated to partner with U GRO Capital with a shared vision to bridge the MSME credit gap in India by providing credit access to the unserved and underserved sectors in the country.”

Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital, said in a statement, “What started as an experiment, co-lending, has gathered momentum and acceptance across the industry. The scale of big Banks combined with the agility and reach of nimble partnerships is going to be the bedrock of the transition of the lending industry. With Yubi’s tech-enabled credit infrastructure, we’ll be able to fast-track our initiatives to reach our mission of ‘solving the unsolved’ for the MSMEs.”

The co-lending or co-origination initiated by RBI provides a framework for the collaboration of two financial institutions, such as a bank and an NBFC, to finance the customer’s needs jointly. With the low-cost funds of a Bank and the on-ground capabilities-sourcing and servicing expertise of an NBFC, this alliance aims to leverage the strengths of both the lenders, making this a winning proposition for all the stakeholders.

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