Oxyzo's FY24 revenue climbs 59% to Rs 903Cr, net profit at Rs 290Cr

Oxyzo Financial Services, the lending arm of B2B commerce unicorn OfBusiness, has shown significant growth in the fiscal year ending March 2024. 

The company recorded an impressive 59% year-on-year increase in operating revenue, reaching Rs 903 crore, compared to Rs 569 crore in the previous year.

The net profit also substantially rose, increasing by 47% to Rs 290 crore from Rs 197 crore in FY23. 

The company's robust performance is attributed to a 61% growth in interest income, which constituted Rs 866 crore of the total revenue.

How did Oxyzo achieve such growth?

The remarkable growth in revenue and profit is largely due to the rise in B2B loan disbursals. Oxyzo, which provides credit solutions and loans to small and medium enterprises (SMEs) and startups, benefited from the increased demand for its services.

Interest received from the disbursement of loans formed 96% of the total operating revenue. Additionally, income from fees and commissions grew by 50% to Rs 36 crore.

The company’s strategic focus on expanding its customer base to include mid-corporates and new-economy companies has also played a crucial role in this growth.

Expenses and financial metrics

Oxyzo's total expenses surged by 66.3% to Rs 514 crore in FY24 from Rs 309 crore in FY23. The primary cost centres include finance costs, which rose by 73.2% to Rs 317 crore, forming the largest portion of the overall expenditure.

Employee benefits saw a 48.7% increase, amounting to Rs 115 crore. Other significant expenses include legal and professional fees, advertising, technology, and other overheads.

Despite the rise in expenses, the company managed to maintain a healthy profit margin, spending Rs 0.57 to earn a rupee in FY24.

What is the company's current financial standing?

By the end of FY24, Oxyzo reported a net worth of approximately Rs 2,600 crore with a post-tax return on assets (RoA) of 4.5% and a gross non-performing assets (NPA) ratio of 1.02%. The company’s assets under management (AUM) reached Rs 5,238 crore.

A significant portion of its net assets, around 30%, are in the unsecured category. Oxyzo collaborates with 40 lenders, including 27 banks, with 70% of its borrowing coming from large public sector and private sector banks.

Oxyzo plans to continue its growth trajectory by investing in and expanding its debt capital markets platforms for its enterprise clients. The company, which raised $200 million in 2022, entered the unicorn club after its Series A round led by Alpha Wave and Tiger Global.