B2B Marketplace OfBusiness Raises $325 Mn At $5 Bn Valuation

Gurugram-based B2B marketplace OfBusiness has raised $325 Mn in its Series G funding round led by Alpha Wave Ventures II, Tiger Global Management and Softbank Vision Fund 2 at a valuation of nearly $5 Bn.

With this fund raise, the startup intends to penetrate deeper into supply chains on the commerce side, while also building technology for its SaaS solutions and financing engine, said the startup in a statement. 

Existing investors which took part in the funding round were Norwest Venture Partners, Matrix Partners India, Creation Investments, Zodius Technologies, Panthera Growth Fund and Marshall Wace.

With this fund infusement, some early investors of the startup – Zodius Technologies, Matrix Partners India and Creation Investments – made a partial exit in this financing round. The round also saw a partial liquidation for 80 ESOP holders.

Founded in 2016 by Asish Mohapatra, Bhuvan Gupta, and Ruchi Kalra, OfBusiness is primarily a marketplace, and also offers working capital financing for procurement of raw materials to small and medium enterprises (SMEs) in the manufacturing and infrastructure space. Its value added services also include integrated SAAS products.

The startup statement said that OfBusiness is well on its way to grow its revenue by four times on a year-on-year (YoY) basis in commerce.

The operating revenue of OfBusiness grew to INR 1,379.01 Cr in FY21 as compared to around INR 698.78 Cr in FY20. Its net profit during the year was INR 19.76 Cr in FY21, against INR 13.83 Cr.

The statement said that Oxyzo, its financing platform that provides cash flow matched financing to aid commerce clients, is likely to grow its assets under management (AUM) by 100% on a year-on-year basis. 

Further, its SaaS offering for marketing vertical, Bidassist, has now grown organically to 2.7 Mn unique users. Recently, it has expanded its offerings to include SMEassist that provides software for ERP, manufacturing, finance and procurement also. In addition to that, the SAAS offerings have now forayed into the international market, it said.

In July this year, OfBusiness turned a unicorn as it received fresh funding worth $160 Mn led by SoftBank Vision Fund 2 at the valuation of around $1.5 Bn. 

In April this year, the startup raised $110 Mn as part of Series D2 funding round through its parent entity OFB Tech from Falcon Edge Capital.

OfBusiness competes with Moglix and Zetwerk. Rahul Garg-led Moglix, turned into a unicorn in May this year as it raised $120 Mn from Falcon Edge Capital and Harvard Management along with participation from existing investors Tiger Global, Sequoia Capital India, and Venture Highway in May this year.

In August, Zetwerk announced the raising of a $150 Mn equity round, led by New York-based D1 Capital Partners, taking its valuation to $1.33 Bn. 

A few names in the B2B ecommerce segment include IndustryBuying, IndiaMart, Infra.Market and Udaan.

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