OfBusiness, a Gurugram-based B2B marketplace, has raised $160 million at a valuation of $1.2 billion led by Japanese investment firm SoftBank. This year, OfBusiness is the 18th Indian startup to obtain unicorn status after Droom, Moglix, and Infra.Market.
OfBusiness intends to use funds from its most recent $160 million (~Rs 1,190.53 crores) round for tuck-in acquisitions as well as strategic collaborations to strengthen its supply chain. The firm deals with raw material sourcing and also offers cash-flow financing to Small and medium-sized enterprises (SMEs) that focus on the manufacturing and infrastructure markets.
SoftBank Vision Fund 2 backed the latest round, which also included Matrix Partners and Falcon Edge as existing investors. In April of this year, the company raised $110 million from Falcon Edge Capital through its parent company OFB Tech as part of a Series D2 fundraising round. It had raised the capital at an estimated value of $800 million. The round was funded by Matrix Partners India, Creation Investments, as well as Norwest Venture Partners. So far, the company has secured over $200 million in debt and equity funding.
OfBusiness offers relatively affordable loans to small businesses with resources such as TMT bars, polymers, kraft paper, and building materials. The Gurugram-based startup also runs a cash flow-based funding institution to purchase raw materials through its own Oxyzo Financial Services NBFC platform. It also provides marketing services via its BidAssist platform, which now has approximately 2 million registered customers.
SoftBank is increasing its investments in high-growth startups in India as a result of the new funding round. In late May, it invested in Zeta’s unicorn round, and also in April, it invested in Meesho. Now, OfBusiness has successfully secured funds at the billion-dollar valuation, the startup has entered India’s B2B marketplace unicorns club amongst Udaan, Moglix, as well as Infra.Market.
OfBusiness also competes alongside Zetwerk, which secured $120 million (~Rs 870 crore) in a Series D fundraising round backed by US-based Greenoaks Capital along with Lightspeed Venture Partners in February this year. Existing investors Sequoia Capital and Kae Capital participated in the round, which positioned the startup at a roughly $600 million valuation.
In April, the company projected to have a $1.5 billion gross merchandise value (GMV) run rate and a $20 million profit before tax (PBT) run rate. In the month of May, Cofounder Asish Mohapatra announced that OfBusiness was planning to go public within the next two years. By September 2021, OfBusiness plans to be profitable, with a revenue run rate of more than $1.1 billion. The company further promises to be growing at a rate of four times every year.
