OfBusiness’ FY22 Profit Surges 3.6X YoY To INR 201 Cr, Operating Revenue Up 4.1X

Building material-focused B2B marketplace OfBusiness saw its net profit balloon over 3.6X year-on-year (YoY) to INR 201.11 Cr in the financial year 2021-22 (FY22) on back of strong growth in its business. The unicorn reported a profit of INR 55.6 Cr in FY21.

Revenue from operations rose over four-fold to INR 7,139 Cr in the fiscal year ended March 2022 from INR 1,747 Cr in the previous fiscal year. Total income also zoomed over 313% to INR 7,269 Cr from INR 1,757.39 Cr in FY21.

The startup largely earned its revenue from sale of traded goods as well as from logistics charges. OfBusiness also generated a portion of its revenues from technical support services. 

Meanwhile, total expenses grew 316% to INR 6,993.55 Cr in FY22 from INR 1,680 Cr in the previous year. At INR 6,443.7 Cr, purchases of stock-in trade accounted for the biggest chunk of expenses. It stood at INR 1,495 Cr in FY21. 

Finance costs stood at INR 156.96 Cr, while employee benefit expenses more than doubled YoY to INR 121.96 Cr. 

Cash flow from operations rose 4.1X to INR 2,016.10 Cr from INR 496.10 Cr in FY21. 

Founded in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta and Nitin Jain, OfBusiness is a B2B marketplace that facilitates procurement of raw material for businesses in the manufacturing and infrastructure sectors. 

The cumulative managerial remunerations for the four out of the five cofounders cost the startup INR 1.6 Cr in FY22.

During the period under review, CEO Mohapatra’s managerial remuneration, reimbursement expenses, and issue of optionally convertible redeemable preference shares stood at INR 28.56 Lakh. The remuneration and issue of preference shares to CTO Bhuvan Gupta cost the startup INR 64.96 Lakh, while the number stood at INR 28.05 Lakh for CFO Kalra.

CSO Sridhar’s remuneration stood at INR 38.7 Lakhs in FY22 while he liquidated ESOP worth INR 3.68 Cr in the period under review.

OfBusiness competes with the likes of Infra.Market, Moglix, Zetwerk, among others. 

In March last year, OfBusiness’ financial arm Oxyzo raised $200 Mn in one of the biggest funding rounds of the year. OfBusiness last raised $200 Mn as part of its Series F round, led by Tiger Global, in late 2021. 

As per a report, the overall Indian construction market stood at $69.77 Bn at the end of 2020. This number is estimated to surge to $119.63 Bn by 2025. 

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