The loan division of OfBusiness, Oxyzo, has announced significant financial growth for the fiscal year 2024. In line with the company’s disclosures to the Bombay Stock Exchange (BSE), consolidated operational revenue increased to Rs 903 crore, indicating a noteworthy year-over-year (YoY) rise of around 58 percent. The main cause of this notable expansion is a notable increase in B2B loan disbursals. Oxyzo’s impressive financial results highlight both the strength of its position in the market and the efficacy of its business plans.
Credits: Money Control
Profit After Tax and Total Income Surge
The company’s profit after tax (PAT) increased by around 47% year over year to almost Rs 290 crore in FY 2024. There is a strong correlation between the rise in annual total income and this improvement in profitability. With Rs 562 crore in total revenue for FY 2023, Oxyzo had already increased its revenue from the previous year by 80%. The data for the current financial year show that this rising trend is still continuing, demonstrating the firm’s capacity to grow profitably while scaling its operations.
Asset Management and Expense Dynamics
$350 million in assets under management (AUM) was reported by Oxyzo. Keeping such a large portfolio under control calls for a calculated approach to spending. From Rs 309 crore to Rs 514 crore in FY 2024, the company’s overall expenses increased by more than 66%. A 48 percent increase in employee benefit costs, or Rs 115 crore, is part of this spending hike. Even though costs have increased significantly, this is expected given the company’s expanding activities, rising workforce, and need for operational support.
Historical Performance and Growth Trajectory
Oxyzo reported PAT of Rs 197 crore, up 2.8X, or almost 185 percent, from the previous fiscal year (FY 2023). The company’s overall income increased by 80% in tandem with this significant increase, suggesting that it has been experiencing steady growth for a number of years. Oxyzo has demonstrated its capacity to effectively harness opportunities and respond to market demands as seen by its constant year-over-year increase in both revenue and profit.
Diversification and Customer Base Expansion
Asish Mohapatra, Bhuvan Gupta, Ruchi Kalra, and Vasant Sridhar founded Oxyzo in 2016. Initially, Oxyzo was a lending platform under OfBusiness, with an emphasis on matching working capital financing and cash flow for SMEs in industries including manufacturing and subcontracting. The company has added mid-corporate and new-economy businesses to its clientele, in addition to SMEs, as well as broadened its product line over time. Oxyzo has been able to access a wider market and reduce the risks related to industry-specific downturns because to this diversification strategy.
The Impact of Series A Funding and Unicorn Status
During its Series A investment round in 2022, Oxyzo attracted $200 million from well-known investors, including Matrix Partners, Alpha Wave, Tiger Global, Norwest Venture Partners, and Creation Investments. This large capital infusion gave Oxyzo the financial clout it needed to grow its business and improve its IT infrastructure, propelling it into the unicorn club. Oxyzo has been able to expand its customer base and enhance its product offerings thanks to the investment.
Strategic Borrowing and Lender Relationships
Oxyzo’s expansion has been largely attributed to its strategic borrowing method. At present, the corporation has forty lenders, and significant public and private sector banks provide 70% of its borrowing. Its varied lender base guarantees a steady and dependable flow of funds, which is essential for maintaining its lending operations and fostering additional expansion. Oxyzo increases its credibility and financial stability by keeping solid ties with reliable financial institutions.
Conclusion
Oxyzo has demonstrated its strong development trajectory and business acumen by its financial success in FY 2024. The company is well-positioned for future success because of its capacity to grow, expand the range of products it offers, and uphold strong connections with lenders. Oxyzo is expected to have a significant impact on both the fintech industry and the overall economy as it continues to innovate and spread its presence throughout the financial services sector.
