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Apollo International Raises INR 45 Crores of Working Capital Through Yubi Loans

apollo-international-case-study

The Yubi Loans Platform helped us qualitatively understand who is the right lender and helped us get to speed while raising funds at competitive rates. But the team does more than that they have helped us connect with a number of lenders, as well as grasp the peculiarities of banks and better equip us to project our plan. The Whole experience of working with Yubi Loans team was fantastic.

Manish Dhir

Finance Head, Apollo International
  • yub-product

    Yubi Loans

    Product

  • yub-product

    Company

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    Logistics, Leather, Tyre & EPC business

    Industry

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    Gurgaon, Haryana

    Location

About the Company

Established in 1994 as part of the Apollo Group, Apollo International Limited (AIL) aims to explore new business domains and exploit the opportunities offered by the Indian economy in the post-liberalization era.

The company has been recognized as ‘Global Growth Company’ by the World Economic forum.

Today, AIL’s business verticals and group companies are present in a diverse set of industries like Integrated Logistics (Apollo LogiSolutions Ltd.), Distribution of Tyres (Tyre Tech Global), International Business Products, Equipment and Projects (IBD) and Fashion Garments and Accessories (Apollo Fashion Company).

To further its expansion plans and fuel its vision of diversification, Apollo International Ltd is required to raise capital at competitive rates.

Apollo_Yubi_Loan_term_loan

Business Requirements

Apollo International Limited had the following business requirements:

  1. Apollo International was looking for a 10-year term loan and assistance in preparing a financial model keeping the company projections and future repayments in mind.
  2. The company was also looking to refinance a loan, for which they were paying a significantly high floating interest rate of 13.30% PA.

The Challenge

To grow its EPC business, Apollo International needed to raise working capital, but the company needed help finding a lender willing to provide it on agreeable terms.

  1. Time-consuming Processes: The credit underwriting process with different banks is tedious, with lengthy due diligence and time-consuming paperwork. Apollo international needed a quicker process to disburse the loan amount quickly.
  2. Lack of Expert Guidance: To get the best solutions for Apollo international per their business needs, AIL needs an internal financial specialist who is knowledgeable about the debt markets and has lender connections.

The Solution

Apollo International needed a one-stop solution where they could connect with multiple lenders and be in a position to choose and negotiate terms.

After onboarding on the Yubi Loans platform, and once the deal was created, the following happened:

  1. Apollo International had access to over 250 lenders on the Yubi loans platform, allowing them to find a lender who best suits their business.
  2. The company received 11 expressions of interest, of which the company shortlisted 6 lenders.
  3. The Yubi Loans team acted as a conduit for information to lenders, facilitating smooth communication at all stages of the loan process.

The Results

Apollo International was able to restructure its INR 25 crore loan at a 2% better interest rate. Additionally, team Yubi got the company a loan enhancement of INR 20 Cr. from the same lender.

Team Yubi is currently collaborating with the team at Apollo International to get another loan re-financed at a better interest rate.

  1. Total Debt Raised: INR 45 Cr
  2. Expressions Of Interest: 11
  3. Saving in Interest Cost: 20 BPS on the Current Deal

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