OfBusiness in India valued at $ 5 billion for funding of $ 325 million – TechCrunch
OfBusiness, a New Delhi-based startup that sells industrial products and provides credit to small businesses, got its fourth round of funding this year and is now valued at around $ 5 billion.
Alpha Wave Global, Tiger Global and SoftBank Vision Fund 2 led the startup’s $ 325 million Series G funding round. Alpha Wave Global, formerly known as Falcon Edge Capital, has invested in OfBusiness through its new $ 10 billion plus fund called Alpha Wave Ventures II.
TechCrunch, which first reported on the new fund and the rebranding of Falcon Edge Capital, reported in October that OfBusiness was in talks with Tiger Global and Alpha Wave Global to raise another round of valuation. over $ 4.6 billion.
This is OfBusiness’s fourth round of funding this year. The startup was valued at around $ 800 million in a round it closed in April of this year.
Work functions as a commodity aggregator and a procurement finance provider. The startup works with banks to provide lines of credit to small and medium-sized businesses that have annual revenue of more than $ 3 million. The six-year-old startup, co-founded by Asish Mohapatra, a former VC, says it operates in nine business-to-business commodity supply chains.
The platform collects customer activity data on which it relies to take out loans to companies that use the OfBusiness platform for raw material sourcing and tendering.
OfBusiness has come a long way in the past six years. A few months after its launch, the startup realized that the biggest problem facing its customers was working capital. After this awareness, Mohapatra began hiring key executives to create a financing offer. In a podcast last year with an investor, he said when the awareness hit him he had little to no understanding of underwriting and how to build a financial business.
âOfBusiness is on track to create a B2B ecosystem that blends large scale with profitability, health and engagement,â Mohapatra said in a statement.
âOur progress over the past 3 years across all of our 3 activities (B2B Commerce, Financing and SAAS market) has been rapid, but there is still a long way to go given the depth and fragmented market structure and unorganized B2B business in India. We believe that we are at the dawn of the B2B revolution in the country and have the privilege of driving it forward. “
The startup, which has been profitable for the past four years, said its recent expansions have helped it quadruple revenue from its business this year to $ 1.7 billion with a net profit of 42 , $ 5 million, Mohapatra said.
Oxyzo, OfBusiness’s funding platform that provides cash flow matched funding to help retail clients, has recently expanded to various commission income adjacencies, making it more relevant to its borrowers, did he declare. Oxyzo’s assets under management are expected to grow 100% this year and have doubled revenue to $ 360 million with a profit of $ 21.6 million. It has been profitable since its inception and works with around 45 financial institutions as debt partners.
Bidassist, the company’s SaaS offering for marketing, has now grown organically to reach 2.7 million unique users, making it one of India’s largest and most engaged platforms for SMEs looking for income opportunities in the public sector.
OfBusiness claims that its three main offerings work in tandem and create “a healthy virtuous circle at scale”. The startup plans to deploy the new funds to deepen its advancements in supply chains on the commerce side, while expanding its technology stack for its SaaS solutions and funding engine.
Also on the roadmap: the discovery of the public market. OfBusiness plans to launch its internal IPO process by the middle of next year, the startup said.