OfBusiness: 10 Key Things You Must Know

Overview

OfBusiness is an Indian B2B e-commerce platform founded in 2015, specializing in raw material procurement and financing solutions for small and medium-sized enterprises (SMEs). Established by a group of seasoned founders, including Ashish Mohapatra, Ruchi Kalra, and others, the company has quickly grown into a market leader in the B2B space. It integrates technology into business processes to deliver better products, prices, and timelines. As OfBusiness prepares for a significant IPO in 2025, here are ten key aspects about the company that highlight its impact and potential.

1. Founding Vision

OfBusiness was founded with the goal of revolutionizing the B2B procurement landscape in India. The founders saw a gap in the market for streamlined procurement services combined with financing solutions—particularly serving the SME sector, which contributes approximately 30% to India’s GDP.

2. Integrated Business Model

At the core of OfBusiness's strategy is its integrated business model that combines raw material procurement with financial services. This model helps SMEs not only source materials at competitive rates but also address financial constraints through credit solutions, enhancing their operational efficiency.

3. Technological Innovations

Utilizing advanced technology, OfBusiness provides a platform called BidAssist, which aggregates government tenders for SMEs to explore new business opportunities. Additionally, their fintech offering, Oxyzo Financial Services, delivers cash flow-based financing to help clients manage their financial needs more effectively.

4. Rapid Growth and Expansion

Since its inception, OfBusiness has expanded rapidly, both in terms of geography and industry verticals. The company now caters to various sectors, including infrastructure, manufacturing, and agriculture, boasting substantial operations across India and serving a diverse clientele.

5. Financial Milestones

OfBusiness has achieved remarkable financial performance, with its revenue reaching INR 19,296 crore by FY24, reflecting a year-on-year growth rate exceeding 25%. The company's profitability has also seen significant improvements, marking it as one of the rare profitable unicorns in India.

6. Planned IPO in 2025

In 2025, OfBusiness plans to launch an initial public offering (IPO), aiming to raise up to $1 billion. The IPO will consist of both new issues and an offer-for-sale component. With this move, OfBusiness targets a valuation between $6 billion and $9 billion.

7. Innovative Financing Solutions

The company provides innovative credit solutions specifically tailored for SMEs through its financial arm, Oxyzo. This service addresses significant challenges faced by SMEs, such as obtaining affordable financing in a sector often underserved by traditional banking.

8. Competitive Landscape

OfBusiness competes with other prominent B2B platforms like Zetwerk and Infra.Market. However, its unique integration of procurement and finance services gives it a competitive edge, especially for SMEs seeking comprehensive solutions.

9. Strategic Acquisitions and Partnerships

To bolster its market position, OfBusiness has pursued strategic acquisitions and partnerships. These initiatives have allowed the company to diversify its offerings and access new customer bases across various sectors.

10. Future Prospects and Market Influence

As OfBusiness prepares for its IPO, it continues to focus on expanding its market influence through technological advancements and service diversification. The company is set to reinforce its role as a leader in transforming India's B2B commerce landscape.

Conclusion

OfBusiness stands at the forefront of India's B2B sector, combining commerce with innovative financial solutions to empower SMEs. With its upcoming IPO and continuous expansion, the company is poised for further growth, making it a central player in India's evolving digital economy.