B2B Marketplace OfBusiness raises $325M at a valuation of $5B

Gurugram-based OfBusiness, which operates an online B2B marketplace for businesses, has raised $325 million or Rs 2,465 crore in a Series G funding round led by Alpha Wave Global (Alpha Wave Ventures II), Tiger Global, and SoftBank Vision Fund 2.

The startup said that Alpha Wave Global has invested around $175 million in this round while Tiger Global and SoftBank put in $100 million and $50 million, respectively.

The round also includes a secondary share sale of around $140 million whereby existing backer Matrix Partners India, Creation Investments, and Zodius Technologies sold part of their holding shares. Around 80 ESOP (employee stock option plan) holders also participated in the secondary transaction.

The new funding round has valued the B2B startup at $5 billion, an almost 1.7x increase from its previous $200 million fundraise, which is said to be valued at $3 billion. Concluding the latest round, OfBusiness has raised $795 million in its four financing round this year.

It’s worthy to mention that OfBusiness became the 18th Indian startup to turn into a unicorn this year after raising $160 million in its Series E round from Softbank VF, Falcon Edge, Matrix Partners India, and Alpha Wave Incubation. Notably, OfBusiness is only among a few Indian startups that are profitable after becoming a unicorn.

OFB Tech Private Limited, which owns and operates OfBusiness, was founded in 2015 by Asish Mohapatra, Bhuvan Gupta, Ruchi Kalra, Srinath Ramakkrushnan, Nitin Jain, Chandranshu, and Biswajit Mishra. 

OfBusiness leverages technology to facilitate raw material procurement and financing solutions to small businesses (SMEs) through its NBFC firm Oxyzo Financial Services. The company claims that Oxyzo has a loan book of around $280 million.

The startup also offers a Software-as-a-Service (SaaS) platform under the brand name Bidassist for SMBs looking at public sector tender opportunities. It has also launched SMEassist providing ERP, manufacturing, financing, and procurement on the platform.

The Gurugram-based startup will utilize the raised funding to penetrate deeper into the supply chain on the commerce side as well as build out technology for its SaaS solutions and financing vertical, the statement said.

OfBusiness said it has been profitable for the last four fiscal years with claiming to have a good service and efficiency. Besides profitability, The startup said it is on its way to growing its revenue from commerce business by 4x year-on-year (Y-o-Y).

“OfBusiness is well on its way to creating a B2B ecosystem that marries large scale with profitability, health, and engagement. Our march in the last three years across all our three businesses (B2B commerce marketplace, financing, and SAAS) has been rapid but there is still a long way to go given the depth and unorganized fragmented market structure of B2B in India,” Asish Mohapatra said.

Apart from its core business, OfBusiness also works in the agriculture value chain through its O’AgriFarm brand. Their agri supply chain business is also on the path to being profitable and is scheduled to clock $400 million in revenue run rate (RRR) for the year, with a marginal EBITDA profitability.

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