Fintech cos Lendingkart and Yubi announce co-lending partnership to make access to finance easier for MSMEs

Credit platform Yubi and MSME (Micro, Small and Medium Enterprises)-lender Lendingkart are entering into a strategic partnership to provide ease of access to finance to the small businesses sector. As part of this collaboration, Lendinkart will deploy Yubi’s co-lending marketplace platform (Yubi Co. Lend) to disburse joint loans through its non-banking financial company, Lendingkart Finance.    It is important to note here that Yubi Co.Lend recorded a 2.5x growth in partnerships in FY23 by joining hands with more than 100 partners including the likes of State Bank of India, Karnataka Bank, Axis Bank, Kinara Capital and more.   In addition, the two entities will also co-originate loans in a 100:0 model of Lendingkart’s 2gthr platform especially designed for the MSME sector. The small business sector of India which is often called the backbone of the Indian economy is largely underbanked despite contributing about 30 per cent to the country’s GDP.    The additional loan disbursement which this partnership hopes to achieve will fill this gap apart from catering to the other needs of the MSME sector.    Gaurav Kumar, Founder and CEO of Yubi said that they plan to leverage the co-lending business model to bring a paradigm shift in the small and medium business space. “To fully leverage this model, it's essential to address the issue of credit access for MSMEs. The solution to this problem lies in making debt accessible to all businesses through technology.”   He also noted that the “combined scale” and “technological capabilities” of the two companies has the potential to unlock Rs 1,000 crore worth of credit over the next one year.   Harshvardhan Lunia, Founder and CEO of Lendingkart, said a collaborative approach will bring in more opportunities and efficiency. “Lendingkart and Yubi have been the cornerstones of digital lending for the last few years in terms of product and tech innovations – and in the process, built platforms that complement each other perfectly,” he said.   Lendingkart was founded in 2014 by Lunia. The Ahmedabad-based company has disbursed 1,40,000 loans to more than 200K MSMEs in more than 4,000 cities and towns across India since its inception.