Yubi, formerly CredAvenue, has tied up with digital consumer finance company 'axio' to facilitate quick and easy credit access to under-served retail customers, the companies said on Wednesday.
Through the partnership axio (formerly Capital Float), aims to disburse Rs 1,500 crore in co-lent loans over the next 12 months. This would add to axio's growth trajectory of having tripled its customer base to six million in the last 12 months.
axio would also leverage Yubi's co-lending platform to continue expanding its retail credit
business.
Yubi Co.Lend will enable axio to partner with leading banks and non-banking finance companies on its platform through which axio will continue to build its portfolio via co-lending, the companies said in a joint statement here.
"The co-lending model has the potential to optimise the debt leverage in the economy, which at present, is severely underleveraged...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," Yubi founder and CEO Gaurav Kumar said.
Yubi's digital platform allows for scalable co-lending, such that non-banking finance companies can grow without putting pressure on the balance sheets and help build sustainable businesses.
axio co-founder and MD Sashank Rishyasringa said, "We recently celebrated the milestone of six million credit customers and are on our way to cross 10 million credit customers by mid-2023. Our partnership with Yubi will further strengthen our desire to democratise 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 percent," he noted.
