OfBusiness, a New Delhi-based startup that sells industrial items and offers finance to small businesses, has raised its fourth round of funding this year, valuing the company at over $5 billion. Alpha Wave Global, Tiger Global, and SoftBank Vision Fund 2 led the startup’s $325 million Series G fundraising round. Alpha Wave Global, previously Falcon Edge Capital, invested in OfBusiness through Alpha Wave Ventures II, a new $10 billion+ fund.
In October, reported that OfBusiness was in discussions with Tiger Global and Alpha Wave Global to raise a fresh round at a value of over $4.6 billion, which was the first to report on Falcon Edge Capital’s new fund and rebranding. This is OfBusiness’s fourth funding round this year. In an April funding round, the business was valued at over $800 million.
OfBusiness is a raw material aggregator and supplier of procurement financing. The firm collaborates with banks to provide loan lines to small and medium businesses with annual sales of more than $3 million. The six-year-old company, which was co-founded by veteran venture capitalist Asish Mohapatra, claims to operate in nine business-to-business raw material supply chains. The platform gathers information on clients’ activities, which it uses to underwrite loans to companies who use the OfBusiness platform to get raw materials and bids.
In the last six years, OfBusiness has gone a long way. Within months after its existence, the business learned that its clients’ main concern was a lack of operating capital. Mohapatra began employing key executives to establish a financial service after this discovery.
In a podcast with an investor last year, he said he realized he had little to no grasp of underwriting and how to develop a finance firm when he realized he had little to no understanding of underwriting and how to build a finance business. In a statement, Mohapatra said, “OfBusiness is well on its way to creating a B2B ecosystem that mixes huge size with profitability, health, and engagement.”
“Our progress in the previous three years has been quick across all of our three businesses (B2B commerce platform, finance, and SaaS), but given the depth and disorganized fragmented market structure of B2B in India, we still have a long way to go.” We feel we are at the beginning of the country’s B2B transformation, and we are delighted to be leading it forward.”
The company, which has been profitable for the previous four years, claimed its recent growth had helped it quadruple revenue this year to $1.7 billion, with a net profit of $42.5 million, according to Mohapatra. Oxyzo, OfBusiness’ finance platform that assists commerce clients with cash flow-matched financing, recently extended to multiple fee revenue adjacencies, making it more relevant to its borrowers, according to the company.
Oxyzo’s AUM is set to increase by 100% this year, while the company’s income has doubled to $360 million, with a $21.6 million profit. It has been profitable since its establishment and operates as a loan collaborator with roughly 45 financial institutions. Bidassist, the company’s marketing SaaS service, has organically grown to 2.7 million unique users, making it one of India’s largest and most engaged scale platforms for SMBs seeking income possibilities in the public sector.
According to OfBusiness, its three primary solutions work together to form “a healthy virtuous loop at scale.” The business intends to use the new funding to expand its supply chain capabilities on the commerce side, as well as expand its technological stack for its SaaS solutions and finance engine. Exploring the public market is also on the agenda. According to the firm, OfBusiness wants to launch its internal IPO process by the middle of next year.
