2021-04-08

Matrix-backed OfBusiness concludes a $110M investment round

 

8th April 2021. New Delhi: OfBusiness, a technology-enabled B2B platform, has concluded a $110M round led by Falcon Edge Capital, with participation from existing investors Matrix Partners India, Creation Investments, and Norwest Venture Partners. The round also saw 73 employees and 12 angel investors sell stock worth $13M.

OfBusiness operates across highly fragmented and deep B2B supply chains wherein its unique business model allows it to add value to B2B customers through a technology-led full-stack solution that spans raw material fulfillment, growth opportunities and working capital financing. Within a few years, the company has become a clear market leader in each of the raw material supply chains it operates in, with a GMV run rate of $1.5B and a PBT run rate of $20M+. While the fulfillment platform provides cost-effective procurement of raw materials to businesses, its financing platform, Oxyzo, provides cash flow matched financing to aid commerce with a book of $200M at a pre-tax RoA of 5%+. The company has also built a strong tech backbone that drives scale and its new opportunities marketing platform (Bidassist) now touches over 2.1M unique users.
 
The company has navigated COVID by maintaining its high quality and profitable financing book while simultaneously expanding its commerce business into multiple raw material supply chains serving various manufacturing sub-sectors including heavy machinery, consumer goods, Agri-processing and nation-building projects including metro lines, highways, affordable housing, irrigation and drinking water. Over the last year, the company raised $200M in debt across its 40+ lending partners including IDFC First, Kotak, SBI, BOB, BOI, PNB, ICICI, HDFC, Bandhan, AU, Axis, ResponsAbility, HLF, and Hero Fin, to name a few.
 
Through this infusion of capital, OfBusiness will expand the number of supply chains and regions it operates in. It also plans to make a few strategic investments and tuck-in acquisitions to penetrate deeper into existing supply chains and consolidate its dominance across them. The company will also invest heavily in expanding its tech offerings to the B2B ecosystem.
 
Asish Mohapatra, Co-founder and CEO, on behalf of team OfBusiness said, “In our mission of serving businesses who are core to nation-building, we have attained strong growth with profitability even through these uncertain periods. We have an unwavering belief in the potential of commerce and financing in the B2B landscape and our vision is to just keep doing more of what we have done so far.”

Navroz Udwadia, Partner, Falcon Edge Capital, commented, “OfBusiness stands alone today in the B2B supply chain terrain in its provision of a value-added full-stack solution to small and medium enterprises. From procurement to quality assurance, logistics to working capital financing, OFB is increasingly seen as the partner of choice to SME’s across multiple massive, fragmented supply chains. Most crucially, the company has been superbly stewarded through COVID and today runs both a profitable supply chain commerce business and a highly synergistic and also profitable supply chain financing business. When we talk to OFB suppliers and customers, we are consistently impressed at the ROI the business drives for each group. This is a business that is truly solving pain points.”

Tyler Day, Partner, Creation Investments, remarked, “We are delighted to continue supporting OfBusiness. The company’s exceptional growth and pristine portfolio quality during the past unprecedented year is a testament to both the value that OfBusiness provides its customers, as well as, the quality of the OfBusiness team.” 

Niren Shah, Managing Director and Head, Norwest Venture Partners India, stated "OfBusiness has demonstrated leadership across both the Fintech and B2B Commerce domains. The team has been able to significantly scale its assets and profitability across both businesses driven by a full-stack tech platform and a strong liabilities framework. They have been able to do this by investing in a top team and by ensuring robust credit quality and business processes. We are delighted to be reinvesting in the Ofbusiness team once again and wish the team all the very best as they seek to transform the underserved B2B and Fintech landscapes in India.”

Commenting on the fundraise, Vikram Vaidyanathan, Managing Director, Matrix India said, “We’re privileged to be early partners with the OfBusiness team. Their relentless execution towards building India’s largest B2B platform has positioned them as the leader in the B2B space. With their profitable growth record, they are well on the way towards creating an IPO scale company and we wish them Godspeed in the journey ahead.” 
 
About OfBusiness:
OFB Tech (OfBusiness) is a tech-enabled platform that facilitates raw material procurement and credit in the B2B markets with a focus on the manufacturing and infrastructure sectors. It integrates technology to enable B2B commerce - to make available better products, at better prices, in better timelines to customers with comprehensive online and offline support. Key raw materials include metals, chemicals, polymers, Agri commodities, petrochemicals and building materials. OfBusiness provides access to cash flow-based financing for buying raw materials through its NBFC Oxyzo Financial Services. The company also offers tech-led marketing services through its Bidaasist platform for new growth opportunities.

About Matrix Partners India: 
Matrix Partners India is an investment firm with approximately $1 billion under management. Founded in 2006, the firm invests in companies targeting the Indian consumer and enterprise market at the seed, early and early growth stages. Matrix India has invested in several market leading companies such as Ola (mobility), Five Star Business Finance (SME lending), Razorpay (payments), Dailyhunt (mobile local language platform), OfBusiness (credit led B2B marketplace), Ola Electric (electric vehicles), Stanza Living (tech enabled student housing platform), Mswipe (mobile POS), OneCard (mobile-first credit card), Country Delight (D2C dairy and fresh foods brand), and Cloudnine Hospitals (leading chain of maternity hospitals) among others. Matrix India has advisory offices in Bangalore, Delhi and Mumbai. Matrix Partners has a global network of funds investing in the US, China and India, with approximately $5 billion under management. Further information is available at www.matrixpartners.in. To know more about our investment philosophy, check out the #MatrixMoments podcast series.