OfBusiness arm Oxyzo enters fund management, launches maiden credit fund

B2B ecommerce unicorn OfBusiness’ lending arm Oxyzo Financial Services has launched its maiden credit fund, marking its formal entry into the fund management business through a new subsidiary.

The fund, Oxyzo Credit Fund I (OCF-I), has been set up under the company’s alternative investment platform and will provide secured credit to mid-sized, investment-grade companies seeking growth capital. The fund is registered as a Category II Alternative Investment Fund with the SEBI.

OCF-I is managed by Oxyzo Investment Manager Private Limited, a wholly owned subsidiary of Oxyzo. The investment manager commenced operations in July 2025 after filing its first fund and received regulatory approval in November 2025. The fund has completed its first close and has begun deploying capital.

According to the company, OCF-I will focus on secured, performing credit opportunities with the aim of generating steady, risk-adjusted returns while protecting capital. It will also prioritise investments in ESG-compliant companies. Its investor base includes high-net-worth individuals, family offices and institutional investors.

In a regulatory disclosure, Tourism Finance Corporation of India said it has approved an investment of up to 5% of the total corpus of OCF-I.

Through its investment management arm, Oxyzo plans to scale its overall fund management business to around Rs 3,000 crore over the next four to five years across multiple strategies.

Founded in 2016 by Ashish Mohapatra, Bhuvan Gupta, Ruchi Kalra and Vasant Sridhar as the lending arm of OfBusiness, Oxyzo operates as a technology-led NBFC focused on lending to small and medium enterprises. It provides loans for the purchase of raw materials and machinery, as well as for supply chain and working capital requirements. In recent years, it has expanded into structured credit and now fund management.

For FY25, Oxyzo reported operating revenue of Rs 1,207 crore, up from Rs 903 crore in FY24. Net profit after tax rose to around Rs 340 crore from Rs 291 crore in the previous fiscal. Total income stood at Rs 1,211 crore, while total assets were reported at Rs 9,236 crore as of FY25.

The company achieved unicorn status in 2022 after raising $200 million in a round led by Alpha Wave and Tiger Global. To date, it has raised more than $264 million from investors including Z47, Hinduja Leyland Finance and AK Capital.

Meanwhile, parent OfBusiness is preparing for a public listing. The company has converted into a public entity and rechristened itself as OFB Tech Limited as part of its IPO plans, though it is yet to file its draft red herring prospectus with SEBI. The proposed IPO is expected to be around $1 Bn and may comprise a combination of a fresh issue and an offer for sale.

On the financial front, OfBusiness reported a 30% increase in net profit to Rs 603 crore in FY24 from Rs 463.2 crore in FY23. Operating revenue rose over 25% to Rs 19,296.3 crore from Rs 15,342.6 crore in the previous fiscal year.