OfBusiness lending platform Oxyzo turns Unicorn after raising $200M in a Series A round

Gurugram-based Oxyzo Financial Services, a technology-enabled smart financing solution provider, today said it has raised $200 million in a Series A funding round at a valuation of $1 billion, making it the latest unicorn startup in the country.

The new financing round was led by Alpha Wave and co-led by Tiger Global, Norwest Venture Partners, Matrix Partners, and Creation Investments. It’s worthy to mention that this is the first external funding round for Oxyzo which started as OfBusiness Group’s financing platform and was eventually made into a separate entity of the group. 

Founded in 2016 by Asish Mohapatra and Ruchi Kalra, Oxyzo started as a financing platform to provide cash flow matched working capital financing for buying raw materials for SMEs in the traditional sectors of the economy such as manufacturing and subcontracting.

The startup later then expanded to value chains beyond OfBusiness’ B2B raw material platform with a diversified product suite and a broader customer base to include SMEs, mid-corporates, as well as the new age economy.

With this, the firm has now leveraged its strong supply chain data warehouse, based its cumulative disbursements of $2 billion+ across 30,000+ nodes to build a digital supply chain and embedded finance marketplace that aims to solve for the under-penetrated formal credit in the B2B economy.

With this round of funding, Ozyzo plans to expand its broader digital financial services play organically and inorganically across a strong own balance sheet play, scaling the supply chain marketplace, and launching innovative fixed income products for the SME space. It will also focus on scaling other fee incomes business lines including debt capital markets and securities.

Speaking on the development, Ruchi Kalra, Co-founder & CEO, Oxyzo, said: “With the emergence of the digital economy, we see a marked shift in the emerging needs and servicing approach in the B2B segment. We want to be at the forefront of this as a diversified financial services company, differentiated through its innovative financial products and digital platforms on the back of strong credit and origination capabilities.”

Speaking on the investment, Navroz D Udwadia, Co-founder and Partner at Alpha Wave Global, said: “We’ve been fortunate to be their partners for a while, and have seen an impressive scale-up with best-in-class risk management despite strong headwinds from Covid. We look forward to helping build a high-single-digit RoA business that compounds over a long runway.”

The fintech platform claims to have grown to an AuM of $350 million with a 100% Y-o-Y growth while maintaining its GNPA at 1.2%. Further, its recently launched fixed income and securities business line has achieved a cumulative market volume of more than $1.6 million in the last 6 months. Oxyzo has been profitable since its inception and is currently at a 5.5%+ pre-tax ROA, it said.

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