Chennai-based debt marketplace Yubi (formerly CredAvenue) announced on Friday the launch of a new real estate and infrastructure financing platform ‘Yubi Build’. The platform was created to reduce the turnaround time significantly by connecting real estate and infrastructure sector borrowers with multiple lenders to avail credit.
Founded in 2020, Yubi facilitates debt financing for enterprises by connecting lenders and investors with corporate borrowers through an online marketplace. Its existing offerings include YubiLoans (term lending and working capital solutions), YubiCo. Lend (co-lending partnerships for banks, NBFCs), YubiInvest (bond issuance and investment for institutional and retail participants), YubiFlow (trade financing solutions) and YubiPools (end-to-end securitization and portfolio buyouts).
The new platform will allow fundraising through loan products specific to real estate and infrastructure sectors such as Lease Rental Discounting (LRD), Construction Finance, Inventory Funding and Greenfield financing, land acquisition, working capital and overdrafts.
“We want to enable access to credit for builders, property developers and infrastructure players from Tier 2&3 cities with strong track record, timely delivery of projects and debt servicing,” Shubham Jain, Chief Business Officer and Head, Yubi Build, told BusinessLine.
Yubi Build currently has 60 issuers (borrowers) and 160 lenders including banks, non-banking finance companies (NBFCs), Mutual Funds, alternative investment funds (AIFs), offshore investors among others. The platform is looking to have 300 lenders and 200 borrowers by the end of the current financial year.
“This year, our target is to have ₹4,000 crore in throughput on the platform,” Jain added.
How does it work
Yubi Build allows prospective borrowers to create a profile and publish a deal/project. The lenders will then be alerted about the deal. Once the lender expresses interest and is accepted by the borrower, the deal is completed. Investors will then get a complete picture of their investment and associated analytics for better control and investment decision making.
“Real estate and infrastructure are longer tenure projects with some even going upto 15-20 years. In some cases, NPAs happen because the banker who sanctioned the loan would have moved from the role and there is no one else to monitor the loan throughout the entire project lifecycle,” Jain said.
“In Yubi Build, we have built systems which can give lenders early warning signals by notifying lenders about delays in PF submissions, GST filing delays, resignation of CXOs or rating downgrades, breach of any covenants,” he added.
August 05, 2022