Looks like another company is heading towards the unicorn club.
The business to business marketplace OfBusiness has recently touched $ 800 million valuation. The valuation was achieved due to a recent raise. The details regarding it are in the article. To know them ; let’s dive in.
WHAT IS OF BUSINESS??
OFB Tech also known as Ofbusiness is an India based platform that supports businesses in order to procure raw material & credit. The parent organization is Oxyzo Financial Services which was established in the year 2015. It was incepted by Ashish Mohapatra, Ex- VC at Matrix Partners; Bhuvan Gupta, Ex- VP in Engineering at Snapdeal; and Ruchi Kalra, Ex- McKinsey Partner.
The major focus is on infrastructure & manufacturing sectors. It makes a move to sync technology so that the timelines are not extended and the requisite product is available whenever needed. They basically deal in providing raw materials like metals, polymers, petrochemicals & other building materials.
In the year 2018; the coampny marked its footprint in 13 states across the nation.
Cash flow financing is provided to small & medium enterprises alongwith certain tech services too. They work on two basic motto:
- Get best prices for raw material
- Get quick & easy access to working capital
They help manufacturers in getting best price quotes as well as financing up to Rs. 2 crores which indeed saves them a lot.
DETAILS ABOUT FUNDING
Since 2015; the company had a great timeline as it was able to bag funds from great venture capitalists which are mentioned below:
|Series A||Matrix Partners|
|Series B||Zodius Partners|
|Series C||Creation Investment|
|Series D||Norwest Venture Partners|
It has a huge network of investors and debt partners like Axis Bank, ICICI Bank, Kotak Mahindra Bank, HDFC Bank, Bandhan Bank, SIDBI, Utkarsh Small Finance Bank and many more leading institutions of the country.
INSIGHTS INTO VALUATION
The company on Thursday disclosed that it raised $ 110 million from Falcon Edge Capital in the series D2 funding through the parent organization.
The funding would be used to give a boost to the supply chain network. The founder gave a hint of the fact that since the company has been profitable during the last 3-4 years; IPO is on the cards.
The Indian infrastructure segment is the driving force of the nation. It is expected to be the third largest construction market by next year. Unfortunately; a large part of it is unorganized & therefore is not that efficient. These loopholes whether operationally or financially are going to affect every related sector like energy, petrochemicals, communication & housing. More technology-oriented ecosystems are needed to boost the speed as we are on global competing platforms.
Companies like Of business are definitely needed to support a lot of ventures that aspire to be in the business of manufacturing.