The Board of Yubi approved the investment in August, the company said in a statement on Monday.
With this investment, Kumar aims to increase his stake in Yubi to over 20% over time. The company is scaling its business, and with more capital being invested in product development, Yubi is expected to reach breakeven by the end of this fiscal year and achieve profitability the following year.
Founded in 2020, Yubi, formerly known as CredAvenue operates as a technology-driven composite debt platform, connecting banks and NBFCs with corporations seeking debt, fintechs looking for co-lending opportunities, and NBFCs aiming to securitise their assets.
The platform grew through multiple acquisitions like Spocto, a digital debt collections solution, and Corpository, a software-as-a-service (SaaS)-based credit assessment tool. The Chennai-based startup launched Aspero, which provides a platform for investment in fixed-income securities for retail investors and wealth partners.
Yubi claims to have facilitated over Rs 1.4 lakh crore in debt volumes, serving more than 17,000 enterprises and 6,200 investors and lenders.
Discover the stories of your interest
This capital infusion follows a series of recent top-level appointments across Yubi and its group firms, including the promotion of Bharat Krishnamurthy to chief technology officer (CTO) of Yubi and Aspero, and Ramesh Ramanathan to deputy chief financial officer of Yubi Group.Backed by investors such as Peak XV, Lightspeed, Lightrock, and TVS Capital, Yubi raised $137 million in a Series B funding round led by New York-based venture capital firm Insight Partners in March 2022, attaining unicorn status.
The company was valued at $1.5 billion following a secondary share sale last year, which separated Yubi from its parent entity, Vivitri Capital.
Earlier this month, in a similar move Ritesh Agarwal, founder of Oyo, invested Rs 830 crore into the hospitality startup through his Singapore-based entity, Patient Capital.