Main Highlights
- OfBusiness has joined the unicorn club after receiving a $160 million round backed by SoftBank’s Vision Fund 2.
- By September 2021, OfBusiness expects to be profitable, having crossed the $1.1 billion revenue run rate in commerce
- The company claims to be growing four times faster than last year
- Apart from the B2B raw material supply chain, the firm also offers services in infrastructure and manufacturing sectors such as food processing, engineering, heavy machinery, and capital goods
Ofbusiness, a Gurugram-based B2B firm, has joined the unicorn club after receiving a $160 million round backed by SoftBank’s Vision Fund 2. According to the firm’s announcement, existing investors Falcon Edge Capital and Matrix Partners also participated in the round.
The investment was secured at a valuation of close to $1.5 billion, nearly doubling its April estimate of $800 million. Following automotive marketplace Droom and online trucking platform BlackBuck, it is the 18th Indian business to become a unicorn this year.
By September 2021, OfBusiness expects to be profitable, having crossed the $1.1 billion revenue run rate in commerce. The company claims to be growing four times faster than last year.
“The present offline supply and financing chain in India is undeserving the country’s 60 million+ SMEs. OfBusiness has successfully created a full-stack system that enables commerce and finance via a single platform, thereby digitizing SMEs. We were pleased by the team’s market leadership, growth, and profitability focus, and we are excited to be a part of OfBusiness,” said Sumer Juneja, Partner at SoftBank Investment Advisers.
CEO and Co-Founder of OfBusiness, Asish Mohapatra’s Verdicts
“Disruption in B2B trade in conventional areas of the economy has long been overdue and has come. To face the magnitude and uniqueness of B2B issues, one must be equipped with teams, expertise, technology, and the capacity to address credit demands. OfBusiness has worked hard to develop all four across its three B2B companies. We welcome SoftBank to the family, and we are certain that we will benefit greatly from their strength in financing and worldwide markets,” stated Asish Mohapatra, CEO, and Co-Founder of OfBusiness.
Apart from the B2B raw material supply chain, the firm also offers services in infrastructure and manufacturing sectors such as food processing, engineering, heavy machinery, and capital goods. OfBusiness also has an Oxyzo subsidiary that provides loans to small and medium-sized businesses, among other services.
About OfBusiness
OFB Tech (OfBusiness) is a technology-enabled platform that helps SMEs with raw material procurement and finance, with an emphasis on the industrial and infrastructure industries. It incorporates technology into the purchasing habits of SMEs in order to provide consumers with better products, at lower prices, and in shorter time frames, as well as complete online and offline assistance.
Metals, chemicals, polymers, agricultural commodities, petrochemicals, and construction materials are among the most important raw resources. It offers SMEs cash flow-based finance for the purchase of raw materials through its NBFC ‘Oxyzo Financial Services.’ The company also provides a variety of digital services for SMEs, such as BidAssist for new growth opportunities.
OfBusiness provides SMEs with institutional finance (secured and unsecured). They accomplish this by aggregating numerous raw materials, obtaining financing from local distributors and financiers, and then passing on the majority of the aggregation advantages to the SME, such as bulk discounts from manufacturers.
The above procedure is known as “Purchase Financing,” and OfBusiness provides credit lines to SMEs for a variety of raw materials such as industrial steel (structures, plates, and coils), electrical products, cement, bulk polymers, chemicals, construction materials, and solar systems. The selected raw materials that SMEs across clusters order directly to the manufacturer are subsequently aggregated through OfBusiness.
Excluding the latest round, it had collected a total of $193.1 million from investors including Norwest Venture Partners, Innoven Capital, and Zodius Capital, according to data portal Crunchbase. Asish Mohapatra, who previously worked with Matrix Partners India, former McKinsey & Company associate Ruchi Kalra, Bhuvan Gupta, who previously worked at Snapdeal, and Nitin Jain, an IIT-Delhi graduate, among others, established the business in 2015.