In a significant move reflecting his confidence in the future of his company, Gaurav Kumar, founder and CEO of fintech unicorn Yubi (formerly CredAvenue), has infused Rs 250 crore ($30 million) in equity capital into the startup. This marks one of the largest personal capital investments by a founder in a technology company in recent times.
The board of Yubi approved this equity round in August 2024, underlining the company’s ongoing growth and expansion ambitions. Yubi, co-founded by Kumar and Vineet Sukumar in 2020, has rapidly established itself as a leader in the lending space. The company’s technology infrastructure streamlines every stage of the financial flow, from lenders to borrowers and back, facilitating a seamless and efficient process.
Since its inception, Yubi has facilitated over Rs 1,40,000 crore in debt volumes, serving more than 17,000 enterprises and 6,200 investors and lenders. The company’s rise was solidified when it achieved unicorn status in March 2022, following a $135 million Series B round led by prominent investors such as Insight Partners, Dragoneer Investment Group, and B Capital Group. Its valuation further soared to $1.5 billion after a secondary sale last year.
In addition to the fresh capital infusion, Yubi has also recently expanded its employee stock options plan, adding $26 million worth of ESOPs for its employees, bringing the total ESOP plan to $70 million. This move highlights the company’s commitment to retaining and incentivizing top talent as it continues its upward trajectory.
The trend of founders investing heavily in their own startups has been gaining momentum in 2024. Notably, Oyo founder Ritesh Agarwal recently invested $100 million into his company through his Singapore-based entity, Patient Capital. Similarly, Ather Energy’s co-founders Tarun Mehta and Swapnil Jain have pumped in $10 million, while founders of firms like BluSmart and Byju’s have also made substantial investments in their respective ventures.
Gaurav Kumar’s substantial capital infusion into Yubi not only underscores his belief in the company’s potential but also reflects a broader trend among startup founders who are increasingly doubling down on their ventures, reinforcing their commitment to long-term success.
