Profitable B2B commerce unicorn OfBusiness raises Rs 100 crore ahead of IPO

Profitable B2B commerce unicorn OfBusiness has raised Rs 100 crore in fresh funding from Cornerstone Ventures, as the industrial procurement major gears up for its public market debut.

The investment marks the first deployment from Cornerstone's second fund, a $200 million vehicle launched last year with a dual mandate to back both early-growth and late-stage B2B enterprises.

"This fund has a hybrid strategy to back early-growth companies (around 70% of the corpus) and scaled, late-stage B2B businesses (about 30%)," said Abhishek Prasad, Managing Partner at Cornerstone Ventures, in a statement.

"OfBusiness is our first investment under the late-stage strategy and one of the opportunities we've been excited about for a while."

What does OfBusiness do?

Founded in 2016 by a team of former Matrix Partners and McKinsey professionals—Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar, and Nitin Jain—OfBusiness operates at the intersection of procurement and finance. The startup provides small and medium enterprises (SMEs) with access to raw materials, while offering collateral-free capital through its NBFC arm, Oxyzo.

The platform allows SMEs in manufacturing, infrastructure, and industrial services to discover suppliers, see clear pricing, and make purchases via a digital marketplace. Leveraging AI, OfBusiness also helps customers manage procurement risks and streamline operations.

On the path to the Dalal Street

The latest capital raise comes after OfBusiness reportedly converted to a public company, renaming itself from "OFB Tech Private Limited" to "OFB Tech Limited," signalling preparations for an anticipated initial public offering (IPO) in the second half of 2025.

OfBusiness is backed by marquee global investors, including SoftBank Vision Fund, Tiger Global, Norwest Venture Partners, and Alpha Wave Global, and has raised approximately $764 million across multiple rounds. The startup's last major raise in 2021 saw it valued at $5 billion.

According to media reports, the company reported Rs 19,296.3 crore in revenue for FY24, a 25.8% year-on-year increase from Rs 15,343 crore in FY23. Net profits rose 30.2% to Rs 603 crore during the same period.