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Yubi Loans Facilitates INR 65 Crores Working Capital Loan for ReshaMandi

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    Farm-to-Retail Digital Marketplace


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Yubi-Loans-Mayank Reshamandi

Mayank Tiwari

CEO, Resha Mandi

“Yubi’s AI engine helped us connect with a plethora of investors and we were eventually able to receive 8 term sheets and raise 65+ crores in just a few months. This is a huge feat for us since this helps us maintain the working capital and move towards our mission of digitising procurement of natural fibres.”

About the Company

ReshaMandi is rewriting the story of India’s natural fibre ecosystem by digitising the process of procurement. This one of a kind agri-tech enables scientifically graded cocoon procurement. 

It is India’s 1st agri-tech start-up focusing on digitising silk supply chain by providing an AI & IoT-led digital ecosystem for silk, starting right from the farm to the consumer, thereby providing fair pricing to farmers.

It also offers a mobile application enabling cocoon and yarn quality assurance, price monitoring, and customizable procurement of silk. The company aims to modernise communication among sericulture farmers, silk reelers, fabric weavers, silk businesses and retailers. Currently, ReshaMandi has 15 centres in Karnataka (13 procurement centres and 2 collection centres), 1 in Maharashtra, and 1 in Andhra Pradesh.

Apart from silk, ReshaMandi has diversified into other natural fibres like cotton, hemp, jute, bamboo, and more. Currently, ReshaMandi has 44 centres (30 procurement centres and 14 business centres) across the natural fibre belt of our country.

The company has raised a total of USD 48.1 mn in funding over 5 rounds from investors like Creation Investment, Omnivore and Strive.

In FY22, ReshaMandi recorded revenue of approx. INR 450 crores and aimed to increase their revenue to INR 2000 crores in the current financial year. With a competitive target and a large supply chain system to maintain, the company needed working capital to achieve its current financial year objectives.

The Challenge

Here is an overview of the most significant challenges:

  1. A 60-day Working Capital Shortfall.
  2. The company wanted to raise a working capital loan to close a 60-day finance shortfall and maintain its supply chain system consisting of farmers, reelers, weavers, and retailers.
  3. To fulfil this loan requirement, the senior management of ReshaMandi wanted to connect with multiple lenders at the same time, which was turning out to be a time and resource-consuming process. 
  4. The company wanted to utilise a debt instrument to raise working capital in a minimum time. 

The Solution

Yubi Loans had a clear goal to help ReshaMandi raise a working capital loan, by connecting it with adequate lenders and ensuring loan disbursement at a quick turn-around time.

  1. Within days of onboarding on the platform, ReshaMandi was able to gain access to the right deals through Yubi Match, an AI/ML-based algorithm, which connects borrowers to suitable investors.  Within three weeks, it procured its first loan of INR 25 crores.
  2. Subsequently, they received 10 expressions of interest within 3 months. Potential lenders included big players like RBL Bank, Standard Chartered Bank, HSBC, etc. 
  3. With access to multiple lenders, ReshaMandi was in a position to negotiate borrowing terms.

The Results

At Yubi, we aspire to help businesses that contribute to transforming our nation for the better.  ReshaMandi is working at the very core of our agricultural system to digitise the procurement of natural fibres and ultimately help farmers, reelers, and weavers to optimise their work and attain fair market price. For Yubi Loans, resolving ReshaMandi’s challenge of obtaining working capital loans was a big achievement: 


  1. Raised INR 65 Crores Working Capital Loan.
  2. Within three weeks of onboarding on the platform, ReshaMandi was able to raise INR. 25 crores from Vivriti capital.
  3. Subsequently, the company received 8 term sheets and was able to procure over INR 65+  crores of working capital loans from various financial institutions.
  4. Also, the quick onboarding, as well as turn-around time in receiving loans gave them an opportunity to focus solely on their business and work towards achieving a 3X increase in revenue. 

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