Lendingkart and Yubi partner to make access to finance easy for MSMEs

Credit platform Yubi and MSME (Micro, Small and Medium Enterprises) lender Lendingkart have formed a strategic alliance to improve access to finance for small enterprises. Lendinkart will use Yubi’s co-lending marketplace platform (Yubi Co. Lend) to issue joint loans through its non-banking financial company, Lendingkart Finance, as part of this agreement.

It is worth noting that Yubi Co.Lend recorded a 2.5x increase in partnerships in FY23 by collaborating with over 100 partners, including State Bank of India, Karnataka Bank, Axis Bank, Kinara Capital, and others.

Furthermore, the two businesses will co-originate loans under a 100:0 model of Lendingkart’s 2gthr platform, which is specifically suited for the MSME sector. Despite accounting for roughly 30% of the country’s GDP, India’s small company sector is largely underbanked.

The additional loan disbursement that this cooperation wants to achieve will fill this gap in addition to meeting the needs of the MSME sector.

Gaurav Kumar, Yubi’s Founder and CEO, stated that the company intends to use the co-lending business model to create a paradigm change in the small and medium business area. “It is critical to address the issue of credit access for MSMEs in order to fully leverage this model.” The solution to this dilemma is to make debt available to all firms via technology.”

Lendingkart

He further stated that the two organizations’ “combined scale” and “technological capabilities” have the ability to unleash Rs 1,000 crore in loans over the next year.

According to Harshvardhan Lunia, Founder and CEO of Lendingkart, a collaborative approach will increase opportunities and efficiency. “In terms of product and tech innovations, Lendingkart and Yubi have been the cornerstones of digital lending for the last few years – and in the process, built platforms that complement each other perfectly,” he said.

Lunia founded Lendingkart in 2014. Since its start, the Ahmedabad-based company has disbursed 1,40,000 loans to over 200K MSMEs in over 4,000 cities and towns across India.