The startup’s IPO size will be between $750 Mn to $1 Bn and will include fresh issue of shares worth $200 Mn
OfBusiness will eye a valuation between $6 Bn – $9 Bn, greater than its last valuation of $5 Bn
The startup is in talks with Bank of America, Citi, JP Morgan and Morgan Stanley for managing the IPO, which will be launched in the second half of 2025
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B2B marketplace unicorn OfBusiness has begun preparations for an initial public offering (IPO) of up to $1 Bn and is close to finalising the bankers for its public issue.
OfBusiness CFO Bhavesh Keswani told Reuters that the startup is in talks with Bank of America, Citi, JP Morgan and Morgan Stanley for managing the IPO, which will be launched in the second half of 2025.
The IPO size would be $750 Mn to $1 Bn. The offer will include a fresh issue of shares worth $200 Mn, while the rest will be an offer for sale component, said Keswani.
“The IPO proceeds will be used for debt repayment and growing existing business,” he told the publication.
The report, citing sources, also said that OfBusiness will eye a valuation between $6 Bn – $9 Bn.
It must be noted that the startup last raised $325 Mn from investors like Alpha Wave Ventures II, Tiger Global, and Softbank in December 2021 at a valuation of $5 Bn.
Founded in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain, OfBusiness facilitates raw material procurement and credit for SMEs for entities operating in manufacturing and infrastructure sectors through its platform. It helps customers procure raw materials like metals, chemicals, polymers, agri commodities, petrochemicals and building materials and infrastructure sectors.
It has raised a total funding of about $878 Mn till date.
On the financial front, it net profit jumped 30% to INR 603 Cr in FY24 from INR 463.2 Cr in the previous fiscal year. Revenue from operations zoomed over 25% to INR 19,296.3 Cr from INR 15,342.6 Cr in FY23.
The development comes at a time when OfBusiness’ fintech arm Oxyzo Financial Services, which provides SMEs cash flow-based financing for buying raw materials, is also eyeing a public listing.
Amid the ongoing IPO boom in the Indian equities market, a number of Indian startups are looking to go public. Recently, it was reported that OfBusiness’ competitor Infra.Market has also lined up as many as eight investment banks for a $700 Mn public offer.
Another competitor, ArisInfra has already filed its draft red herring prospectus (DRHP) for a near $72 Mn (INR 600 Cr) IPO.
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