Yubi powers co-lending alliance between Axis Bank & Muthoot Microfin

Mumbai, Feb 14: Yubi, the world’s first unified credit platform, has entered a strategic co-lending partnership with Axis Bank, one of India's top private sector banks, and Muthoot Microfin, a leading microloan provider. This collaboration aims to address the challenge of limited access to capital at the grassroots level of the Indian economy. Its goal is to significantly improve living standards and create livelihood opportunities for underserved communities at an affordable cost and on a large scale.

Axis Bank will harness Yubi's advanced co-lending platform to develop a well-rounded and lucrative portfolio spanning diverse sectors, with an initial focus on Microfinance Institutions (MFI). Meanwhile, Muthoot Microfin will play a pivotal role by handling sourcing, collection activities and utilizing its strong brand recognition. This collaborative effort will empower Axis Bank to seamlessly deliver a steady stream of debt capital to borrowers belonging to joint liability groups in the most remote corners of India; all achieved with exceptional swiftness and efficiency.

Gaurav Kumar, Founder & CEO, Yubi, said, "India's immense potential for growth lies in empowering every individual, especially at the grassroots level. Microfinancing through co-lending partnerships is the key to unlocking this potential. With our co-lending platform, we're not just making it possible; we're making it accessible, efficient, and transformative. By joining hands with financial institutions like Axis Bank and microloan experts like Muthoot Microfin, we're enabling access to capital for those who need it most. This is our way of contributing to a stronger, more inclusive, and prosperous India."

Commenting on the partnership with Axis Bank, Sadaf Sayeed, CEO of Muthoot Microfin Limited, said, “This partnership marks a significant milestone in our commitment to empowering the underserved communities across the nation. This innovative collaboration ensures a steady debt capital line, bringing unparalleled benefits to the end micro loan borrower. As a tech-enabled initiative powered by Yubi’s co-lending platform, we anticipate reaching an unprecedented scale of efficiency, solidifying our dedication to fostering financial inclusion. The benefit of efficiencies achieved through this endeavor will be passed on to the bottom of the pyramid borrowers, underscoring our commitment to making a positive impact in the lives of those who need it the most.”

In the first nine months of FY24, Yubi’s co-lending platform recorded over 9 Million transactions and saw a 40% growth YoY in terms of Gross Transaction Value. The co-lending model is gaining popularity as a way for banks to diversify their portfolios and for NBFCs to access cheaper funding sources, lowering risk exposure and thereby reducing their cost of funds.