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The SMEs or the small and medium-sized enterprises in India comprise over 63.4 mn units, employ about 460 million people, and generate around 30% of the GDP of the country. Here, OfBusiness is one of the Indian startups that is largely focusing on the SMEs and is materialising the procurement of the raw materials and making the availability of credit easy for them.
Through its raw material fulfilment engine and new possibilities platform, OfBusiness delivers value to SME's business beyond funding (BidAssist). OfBusiness is located in Gurgaon and has operations in 14 countries. Oxyzo Financial Services, which is a nonbanking finance company that is registered with the RBI and its parent OFB Tech Private Limited provides different business-to-business services to Small and medium enterprises, under the brand name OfBusiness.
OfBusiness is a raw material collector and supplier of procurement financing. The firm collaborates with banks to provide loan lines to small and medium-sized businesses with annual sales of more than $3 million. The platform gathers information about user behaviour that it uses to insure loans to firms who use the OfBusiness platform to get raw materials and bids.
OfBusiness has turned unicorn with a $160 mn funding round that came on July 31, 2021, thereby becoming the 18th Indian startup to turn unicorn in 2021. The OfBusiness company has thus been the only women-led Indian startup to turn unicorn in the same year.
Get to know more about OfBusiness India, its founders and team, industry details, startup story, mission and vision, investors, growth, revenue, business and revenue model, investments, funding, and more here.
OfBusiness - Company Highlights
| Startup Name | OfBusiness |
|---|---|
| Also known as | OfBusiness.com, OFB Tech, OFB Tech Pvt Ltd |
| Legal Name | OfB Tech. Pvt. Ltd. |
| Headquarters | Gurgaon, Haryana, India |
| Industry | Fintech, NBFC, Lending |
| Founders | Asish Mohapatra, Bhuvan Gupta, Ex Chandranshu Sinha, Nitin Jain, Ruchi Kalra, Srinath Ramakkrushnan, and Vasant Sridhar. |
| Founded | 2015 |
| Areas Served | India |
| Current CEO | Asish Mohapatra |
| Total Funding | $878.1 mn (2022) |
| Operating Revenue | $230.22 mn (Rs 1,748 crore in FY21) |
| Valuation | $5 bn (December 2021) |
| Website | www.ofbusiness.com |
About OfBusiness
OfBusiness - Industry
OfBusiness - Founders and Team
OfBusiness - Startup Story
OfBusiness - Vision, Mission, and Values
OfBusiness - Name, Logo, and Tagline
OfBusiness - Business Model and Revenue Model
OfBusiness - Funding, and Investors
OfBusiness - Investments
OfBusiness - Growth and Revenue
OfBusiness - Competitors
OfBusiness - Future Plans
About OfBusiness
OFB Tech (OfBusiness) is a tech-enabled platform that enables SMEs in the infrastructure and industrial sectors to acquire raw materials and obtain finance. It incorporates technology into SME purchasing behaviour to provide clients with better items, at better costs, and in shorter time frames, as well as extensive online and offline assistance. Metals, chemicals, polymers, agricultural commodities, petrochemicals, and construction materials are all important raw materials.
Through its NBFC 'Oxyzo Financial Services,' OfBusiness offers SMEs cash flow-based finance for the purchase of raw materials. BidAssist for new growth prospects is one of the company's many digital services for SMEs.
Small-medium businesses in the manufacturing and infrastructure industries can use the company's platform to acquire financing from local distributors and lenders, allowing them to satisfy their financial needs. OfBusiness provides SMEs with institutional loans (both secured and unsecured). They accomplish this by combining numerous raw materials, obtaining financing from local distributors and financiers, and then passing on the majority of the aggregation advantages to the SME, such as bulk discounts from manufacturers.
OfBusiness allows SMEs to get credit lines for a variety of raw materials, including industrial steel (structures, plates, and coils), electrical items, cement, bulk polymers, chemicals, construction materials, and solar systems, through the aforementioned method. The selected raw materials that SMEs across clusters order directly to the manufacturer are subsequently aggregated through OfBusiness.
OfBusiness - Industry
Non-Banking Finance Companies (NBFCs) have played an essential role in the Indian financial system by augmenting and contending with banks, as well as introducing effectiveness and variation into financial intermediaries. In terms of operations, heterogeneity, asset quality and profitability, and regulatory architecture, NBFCs have come a long way.
In India, the non-banking financial companies (NBFC) sector has seen a tremendous transition in recent years and now plays an important role in the development of the Indian financial system. In India, NBFCs play an important role in the development of core infrastructure, transportation, job creation, wealth creation, and economic growth of the poor.
Technology is assisting NBFCs in customizing credit assessment models and streamlining business operations, lowering time to market, and improving customer experience. NBFCs are now going out to Tier-2, Tier-3, and Tier-4 markets, distributing loans through many client touch-points, and developing a linked channel experience that gives an omnichannel seamless experience with 24/7 sales and service.
With today's customers changing and accessing digital media like never before, NBFCs have embarked on new and better methods to engage with the customer.
Purbalee Dutta
OfBusiness - Founders and Team
OfBusiness was founded by Asish Mohapatra, Bhuvan Gupta, Ex Chandranshu Sinha, Nitin Jain, Ruchi Kalra, Srinath Ramakkrushnan, and Vasant Sridhar.
Asish Mohapatra
Since August 2015, Asish Mohapatra has been the Co-Founder and Head of Sales at OfBusiness. From October 2010 through August 2015, Asish worked as a Senior Associate at Matrix Management Corporation in Mumbai. Asish's goal at Matrix was to use his healthcare and operational knowledge to help entrepreneurs grow their businesses. Asish has a B. Tech in Mechanical Engineering from the Indian Institute of Technology, Kharagpur, and an MBA in Finance and Marketing from the Indian School of Business, Hyderabad.
Bhuvan Gupta
Bhuvan Gupta has been the Co-Founder and Chief Technology Officer of OfBusiness since November 2015. Bhuvan formerly worked at Snapdeal as the Vice President of Engineering and Exponential as the Director of Engineering. Bhuvan holds an MBA degree from the University of Delhi and has done his B.Eng in Civil Engineering from the Birla Institute of Technology and Science in Pilani.
Ex Chandranshu Sinha
Ex Chandranshu Sinha, is the Co-Founder and CTO of EkAnek Networks and the Co-Founder and CTO of Foxy. Ex Chandranshu Sinha has also worked at OfBusiness as the co-founder and Head of Products.
Nitin Jain
Since September 2015, Nitin Jain has been the Co-Founder and Head of Construction at OfBusiness. Nitin formerly worked at the Royal Bank of Scotland as Vice President of Structured Solutions Trading. Nitin graduated from the Indian Institute of Technology Delhi with an M.Tech. and a B.Tech. in Computer Science.
Ruchi Kalra
Since 2016, Ruchi Kalra has been the Co-Founder and Head of Credit and Payments at OfBusiness. Ruchi formerly worked for McKinsey & Company as a Partner and Evalueserve as a Senior Business Analyst. Ruchi has a B.Tech. in Chemical Engineering from the Indian Institute of Technology, Delhi, and an MBA from the Indian School of Business.
Srinath Ramakkrushnan
Since November 2015, Srinath Ramakkrushnan has been the Co-Founder and Head of MRO at OfBusiness. Srinath formerly worked with ITC Ltd as an Assistant Manager of Projects, Manager of Operations and Supply Chain, and Manager of Sustainability Operations. Srinath graduated from the Indian Institute of Technology, Madras, with a B.Tech. in Mechanical Engineering.
Vasant Sridhar
Since November 2015, Vasant Sridhar has been a Co-Founder of OfBusiness. OfBusiness is a VC-backed startup that adds value to SMEs through technology-enabled innovations in commerce, lending, and logistics. Vasant was formerly at ITC Limited, where he was in charge of New Business Development & Projects. Vasant received his Bachelor's degree in Chemical Engineering from the Indian Institute of Technology, Madras. He also co-founded Bloodline, a mobile and internet-based solution for bridging the country's significant demand-supply gap for emergency blood.
OfBusiness has been listed in Linkedin as a company that works with an employee strength between 501-1000.
OfBusiness - Startup Story
Asish Mohapatra, Bhuvan Gupta, Ex Chandranshu Sinha, Nitin Jain, Ruchi Kalra, Srinath Ramakkrushnan, and Vasant Sridhar founded OfBusiness in January 2016. They had worked at McKinsey, Religare, Royal Bank of Scotland, ITC, and Snapdeal. Everyone was in various stages of laying their resignation papers down while trying to start their own business in 2015. They believed that real India's companies, which are SMBs, had a significant piece of the issue to solve.
The co-founders aspired to create a major B2B platform that would serve small and medium businesses in industries such as manufacturing and construction. What sparked it was the fact that B2B was a relatively unexplored industry in 2015 and there was a major B2C boom at the time.
OFB Tech (OfBusiness) is a tech-enabled platform that enables SMEs to acquire raw materials and get loans, with an emphasis on the industrial and infrastructure industries. It incorporates technology into SME purchasing behaviour to provide clients with better items at better costs in shorter time frames, as well as extensive online and offline assistance. It aids in the procurement of critical raw resources such as metals, chemicals, polymeric materials, agricultural commodities, petrochemical products, and construction materials.
BidAssist for new growth prospects is one of the company's many digital services for SMEs.
OfBusiness - Vision, Mission, and Values
It aids in the procurement of critical raw resources such as metals, chemicals, polymeric materials, agricultural commodities, petrochemical products, and construction materials.
All of their activities and plans are guided by guiding principles, according to the firm, which are,
- Warrior Spirit
- Unrivaled Culture
- IntegrityIntegrity
- Industry Excellence
- Customer Centricity
OfBusiness - Name, Logo, and Tagline
OfBusiness' Company's tagline says, "Spurring Small and Medium to Large" as small-medium businesses in the manufacturing and infrastructure industries can use the company's platform to acquire financing from local distributors and lenders, allowing them to satisfy their financial needs.
OfBusiness - Business Model and Revenue Model
It has a lending vertical through its non-banking finance firm, as well as a SaaS business, in addition to its primary commerce operation in the B2B raw material supply chain arena. Oxyzo, the company's lending vertical, is the company's second-largest business vertical, with a loan book of roughly $280 million. The SaaS vertical assists SMEs in the Indian and worldwide industrial and infrastructure industries with online procurement of different tenders.
OfBusiness said in a statement that it is on track to quadruple its income in commerce year over year. The business noted that OfBusiness has been profitable for the past four years, with technology at the core of recruitment, servicing, and productivity. Through its NBFC 'Oxyzo Financial Services,' OfBusiness offers SMEs cash flow-based finance for the purchase of raw materials. BidAssist for new growth prospects is one of the company's many digital services for SMEs.
While commerce accounts for 55% of the company's overall net revenue, loans and SaaS account for 43% and 2%, respectively. Lending is the largest contributor to earnings, followed by trade.
Michelle D’souza
OfBusiness - Funding, and Investors
Over the course of 11 rounds of financing, OfBusiness has raised a total of $878.1 million. Their most recent funding came from a Series-G round on December 20, 2021. The company turned unicorn with the July 31, 2021, dated funding round led by Softbank, where it successfully raised funds close to $160 mn.
After receiving $325 million in total funding, OfBusiness, a business-to-business financial firm, is now valued at over $5 billion.
In this round, Alpha Wave Global put in roughly $175 million, while Tiger Global and SoftBank each put in $100 million and $50 million. Existing investors Matrix Partners India, Creation Investments, and Zodius Technologies sold part of their shares in this round, for a total of about $140 million. The secondary deal included around 80 ESOP (employee stock option plan) participants. Existing investors sell shares in a secondary share sale, and the proceeds do not go to the company's coffers.
Asish Mohapatra, Co-founder, and CEO of OfBusiness stated that the additional funding will be used to expand the startup's presence in the supply chain on the commerce side, as well as to develop technology for its software-as-a-service (SaaS) solutions and finance sector. Mohapatra further stated that he expects the firm to go public in the next 9 to 12 months.
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| Dec 20, 2021 | Secondary Market | $140M | Alpha Wave Global, SoftBank Vision Fund, Tiger Global Management |
| Dec 20, 2021 | Series G | $185M | Alpha Wave Global, SoftBank Vision Fund, Tiger Global Management |
| Sep 30, 2021 | Series F | $200M | Tiger Global Management |
| Jul 31, 2021 | Series E | $160M | SoftBank Vision Fund |
| Apr 8, 2021 | Series D | $110M | Alpha Wave Global |
| Sep 24, 2019 | Series D | ₹2.4B | Norwest Venture Partners |
| Jan 1, 2019 | Venture Round | - | InnoVen Capital |
| Jul 18, 2018 | Series C | $29M | Alpha Wave Global, Creation Investments Capital Management, LLC |
| Oct 27, 2017 | Debt Financing | ₹250M | Kotak Mahindra Bank |
| Dec 13, 2016 | Series B | ₹750M | Zodius Capital |
OfBusiness - Investments
OfBusiness has invested in two companies. FarMart raised $748 million on October 21, 2021, which was their most recent investment.
| Date | Organization Name | Round | Amount Raised |
|---|---|---|---|
| Oct 21, 2021 | FarMart | Series A | ₹748M |
| Aug 17, 2021 | UpScalio | Series A | $42.5M |
OfBusiness - Growth and Revenue
The debut of its NBFC subsidiary, OXYZO, in 2017 was a watershed moment. With a loan book of approximately $200 million, the unicorn's lending vertical is the unicorn's second-largest business vertical. The company claims to be growing at a rate of four times every year.
According to the creators, the funding feature has fueled the startup's development to the point where it is now, and this is the genuine turning point for the firm. Normally, the firm gets margins of 5-10%, but (merger and acquisition) might help OfBusiness increase margins to the early teens, and eventually close in on the 20% level.
Here's taking a look at the OfBusiness growth highlights:
- OfBusiness boasts of having over 700K registered SMEs
- The company has a list of over 100 product categories, and promises to deliver raw materials at the lowest prices
- OfBusiness operates in 24+ states of India
- The unicorn further boasts of having spread its operations to 35+ countries till now
- OfBusiness has completed 100K+ transactions till date
- The company is presently serving 3000+ SMEs of India and has already served 4500+ SMEs
- It has over 50 lending partners
- OfBusiness has noted 10,000+ crore disbursals till date
When it comes to revenues, OfBusiness has seen around 2X growth in its operating revenues, which stood at Rs 1748 cr in FY21 from Rs 850 cr of revenue that the company received in the previous fiscal.
OfBusiness Revenue Breakdown
A major portion of its revenues (85.7%) came from the sale of its industrial goods and raw materials, which has successfully put in Rs 1494.1 cr for OfBusiness. Here's a look at the other verticals of its revenues:
| Revenue Verticals | FY21 | FY20 |
|---|---|---|
| Sale of industrial goods and raw materials | Rs 1494.1 cr | Rs 665.6 cr |
| Income received from financial services | Rs 219.3 cr | Rs 164 cr |
| Other operating income | Rs 34.6 cr | Rs 20.3 cr |
OfBusiness Expenses Breakdown
OfBusiness doubled on its expenditure when compared with the last fiscal. The scale of operation, as well as the order flow, doubled for the company. The total expenditure of OfBusiness was measured at Rs 1680 cr in FY21, which was only Rs 815 cr in the previous fiscal. Here's listing its expenditure as compared with FY20:
| Expenditure | FY21 | FY20 |
|---|---|---|
| Purchases of stock-in-trade | Rs 1451.11 cr | Rs 645.70 cr |
| Other operating and admin expenses | Rs 56.7 cr | Rs 50 cr |
| Finance costs | Rs 99.8 cr | Rs 67.7 cr |
| Employee benefit costs | Rs 55.4 cr | Rs 43 cr |
| Transportation costs | Rs 17.1 cr | Rs 8.8 cr |
OfBusiness Financials
| OfBusiness Financials | FY21 | FY20 |
|---|---|---|
| Operating revenue | Rs 1748 cr | Rs 850 cr |
| Expenses | Rs 1680.05 cr | Rs 815.2 cr |
| Profit/Loss | Profit of Rs 55.7 cr | Profit of Rs 32.3 cr |
| EBITDA margin | 10.44% | 13.72% |
Looking at the unit level calculation, OfBusiness had to spend Rs 0.96 to earn a single rupee of operating revenue.
OfBusiness - Competitors
Funding Circle, Moglix, OnDeck, Zetwerk, Avant, Capital Float, InCred, SMEcorner, Infra Market, and Black Knight are among OfBusiness's main rivals.
Shubham Kumar
OfBusiness - Future Plans
On December 20, OfBusiness, a business-to-business trade, and financing platform announced a $325 million funding round headed by current investors Alpha Wave Global, Tiger Global Management, and SoftBank. OfBusiness' valuation has more than doubled in the last year, to $5 billion, thanks to an unparalleled financing boom.
According to co-founder and CEO Asish Mohapatra, OfBusiness now expects to submit paperwork for an Initial Public Offering (IPO) by late-2022, with a domestic listing by the end of the year. It intends to hire investment bankers for its initial public offering (IPO) in March-June of next year.
“We are profitable, and going public is the natural next step. Our commerce and lending businesses will continue to grow at 4x and 2x respectively the year after next as well. There is still a long way to go given the depth and unorganized fragmented market structure of B2B in India. We believe that we are in the nascence of the B2B revolution in the country,” Mohapatra said.
OfBusiness - FAQs
What does OfBusiness do?
OfBusiness is a raw material collector and supplier of procurement financing. The firm collaborates with banks to provide loan lines to small and medium-sized businesses with annual sales of more than $3 million.
Which country is OfBusiness based in?
OfBusiness is an Indian company.
Which companies do OfBusiness compete with?
Funding Circle, Moglix, OnDeck, Zetwerk, Avant, Capital Float, InCred, SMEcorner, Infra Market, and Black Knight are among OfBusiness's main rivals.
Who founded OfBusiness?
OfBusiness was founded by Asish Mohapatra, Bhuvan Gupta, Ex Chandranshu Sinha, Nitin Jain, Ruchi Kalra, Srinath Ramakkrushnan, and Vasant Sridhar.
Source :- https://startuptalky.com/ Author :- Sarika Anand Date :-March 03, 2022 at 12:58PM