B2B technology-enabled commerce and financial services platform, Ofbusiness secured $200 million in Series F funding round backed by Tiger Global Management, alongside existing investors Matrix Partners India, SoftBank Vision Fund 2, and Falcon Edge Capital, valuing the startup almost $3 billion.
The latest capital infusion will primarily focus on strengthening its footprint in newer sectors, with multiple acquisitions, partnerships, and joint ventures in the process. OfBusiness further seeks to consider additional strategic investments in value-added services in the supply chain, which will add significance to its products and services that are offered via its B2B network.
Asish Mohapatra, CEO and Co-Founder, OfBusiness commented on the fundraise saying, “The India B2B markets across intermediaries, financial services, and manufacturers are fast consolidating, driven by technology and access to efficient debt capital. This is driven by massive tailwinds of global demand being diverted to India in the core sectors and supply consolidating in large players. We want to be at the forefront of this opportunity as these supply chains get remodelled, redesigned, and/or recreated. We welcome Tiger Global to the family and aim to leverage their experience and muscle in global markets.”
Mohapatra also added the average age of the companies that OfBusiness is aiming to acquire in Tier-II cities in India is 16 years. Currently, the majority of OfBusiness customers are from West (40%), North (35%), and South (20%) India, with Central and East India accounting for 5% of the company’s current consumer base.
With its variety of services, OfBusiness currently operates in 20 locations across India and is constantly expanding its reach, along with its latest foray into international imports in niche industries in India.
Ofbusiness is a marketplace that streamlines raw material procurement and credit for SMEs in the industrial and infrastructure industries was founded by Bhuvan Gupta, Nitin Jain, Ruchi Kalra, Vasant Sridhar, and Asish Mohapatra in 2016. The startup combines technology with SMEs in order to offer customers the highest quality products, at lower costs, with faster delivery along with robust online and offline assistance. The Delhi NCR-based startup offers SMEs cash flow-based credit for the purchase of raw materials using its NBFC – Oxyzo Financial Services.
Ofbusiness is among the handful of profitable startups that have joined the prestigious unicorn club this year, with co-founder and CEO Asish Mohapatra earlier indicating that the company will debut on stock exchanges within the next 1-2 years.
Ofbusiness claims that Small and Medium Enterprises (SMEs) can deal with existing suppliers in contexts of timely payments on delivery or in advance by leveraging the company’s credit lines. Thereby, SMEs can save roughly 3 percent on purchase orders with a guarantee for upfront payments.
