OfBusiness In Talks With Bankers For $500 Mn IPO Next Year: Report

Joining the long list of startups going public, B2B marketplace OfBusiness has reportedly kicked off discussions with investment bankers as it aims for an initial public offering (IPO) by August next year. 

The company held talks with at least five investment banks, including Kotak Investment Banking for its IPO, YourStory reported, citing sources close to the matter.

Inc42 has reached out to OfBusiness for comments on the development. The story will be updated based on the response.

The report also said that the issue will comprise a mix of primary and secondary shares offering around $500 Mn.

Founded in 2015 by Asish Mohapatra, Bhuvan Gupta, Chandranshu Sinha, Nitin Jain, Ruchi Kalra, Srinath Ramakkrushnan and Vasant Sridhar, OfBusiness is an ecommerce platform offering construction materials for small enterprises, apart from providing financing solutions.

The startup has raised around $878 Mn in total, as of July 2024, and is backed by marquee investors like SoftBank, AlphaWave Global, Tiger Global, and Norwest Venture Partners.

Sources also confirmed to the report that the discussions are fairly at the early stages and the contours of the deal are subjected to change.

Aside from the IPO plans of OfBusiness, Oxyzo Financial Services, its lending arm, in which it holds over a 70% stake, is also considering to get listed separately, the sources also said as per the report.

However, the plans of Oxyzo Financial Services to go public do not have a tentative date, confirmed the report.

This new development comes at a time when Ola Electric and FirstCry made their strong debut in the market, earlier this week.

Meanwhile, OfBusiness reported its consolidated operating revenue surge over 25% year-on-year (YoY) to cross the INR 19,000 Cr mark in the financial year 2023-24 (FY24), with net profit breaching the INR 600 Cr mark.

Also, the Delhi NCR-based unicorn posted a net profit of INR 463.2 Cr on an operating revenue of INR 15,342.6 Cr in the previous fiscal year. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.