IPO-Bound OfBusiness Snags INR 100 Cr From Cornerstone

B2B marketplace unicorn OfBusiness, which is planning to launch its initial public offering (IPO) in the second half of 2025, has raked in INR 100 Cr (around $11.7 Mn) from Cornerstone Ventures.

Cornerstone made this investment through its $200 Mn second fund. The investment vehicle, launched last year, marked its first close at $40 Mn in January and is aiming for the second close by this year end.

OfBusiness plans to deploy the fresh proceeds in driving digital adoption and financing access for small and medium enterprises (SMEs).

“OfBusiness is our first investment in the late-stage strategy and one of the opportunities we have been excited about for a while now. Delighted to become a part of its journey as the leading commerce and supply chain platform for Indian SMEs across sectors,” said Cornerstone Ventures’ managing partner Abhishek Prasad.

Founded in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta and Nitin Jain, OfBusiness provides raw material procurement and financing solutions to SMEs operating in manufacturing and infrastructure sectors through its platform. 

The IPO-bound marketplace launched a new SaaS platform Nexizo.AI in January, eyeing to help “top-tier” SMEs operating in the infrastructure and manufacturing sectors fuel their business growth. 

Overall, OfBusiness has raised a total funding of about $879.61 Mn to date. The startup counts Alpha Wave Ventures II, Tiger Global and SoftBank as its investors.

The development comes two months after the startup converted itself into a public entity, as part of its preparations for IPO.

In September last year, reports surfaced that the company was planning for a $750 Mn to $1 Bn IPO in the second half of 2025. It is said to be eyeing a valuation of $6-9 Bn for the IPO.

Following that, OfBusiness also roped in five banks including Axis Capital, Morgan Stanley, JPMorgan, Citigroup and Bank of America.

In the light of rising IPO-targeted companies across various industries, new investors are interested in profitable and sustainable ventures.

In March alone, IPO-bound businesses such as logistics major Shadowfax and B2B manufacturing unicorn Zetwerk raised funding of INR 65.4 Cr and INR 43 Cr, respectively.

On the financial side, OfBusiness’ consolidated operating revenue surged over 25% to INR 19,296.3 Cr in the financial year 2023-24, compared to INR 15,342.6 Cr in FY23.

Further, the Delhi NCR-based unicorn reported a 30% surge in its annual net profit of INR 603 Cr in FY24, while it was INR 463.2 Cr, a year ago.