OfBusiness’ Oxyzo Enters Debt Marketplace Biz

SUMMARY

Oxyzo has placed around $200 Mn (INR 1,630 Cr) of structured debt every month on a debt marketplace it has set up for SMEs

Oxyzo has set aside some existing SME customers who have been working with it and OfBusiness for the past seven to eight years

The startup’s asset size stood at INR 5,578 Cr in FY23 and its loan book stood at over INR 4,800 Cr during the financial year

Lending unicorn Oxyzo has reportedly entered the debt marketplace business years after it started as a financial arm of the B2B ecommerce unicorn OfBusiness.

The company has partnered with banks, non-banking financial companies (NBFCs), corporate houses and family offices. According to an ET report, Oxyzo has placed around $200 Mn (INR 1,630 Cr) of structured debt every month on a debt marketplace it has set up for SMEs.

The startup earns money via a commission model; it takes a share from each loan disbursed via its marketplace platform.

Citing Oxyzo’s head of corporate finance, Prashant Roy Sharma, the report added that Oxyzo set aside some existing SME customers working with it and OfBusiness for seven to eight years. These customers were directly funded by Oxyzo earlier on their purchases from the B2B ecommerce marketplace.

According to Sharma, many Oxyzo customers have achieved a scale where they have broader financial requirements, which the startup would be able to meet via the debt marketplace.

Oxyzo’s Debt Marketplace

The platform will allow SMEs to access long-term funds, supply chain finance solutions from banks and NBFCs and raise working capital loans. The startup currently offers around INR 400-600 Cr of debt market funding through non-convertible debentures to the customers on the debt financing platform.

Further, the platform allows mid-market SMEs to access the capital market, which would otherwise be beyond these enterprises.

Founded in 2016 by OfBusiness founders Asish Mohapatra and Ruchi Kalra, Oxyzo became India’s 98th unicorn last March when it raised India’s largest Series A round worth $200 Mn from Alpha Wave, Tiger Global, Norwest Venture Partners, Matrix Partners and Creation Investments.

Oxyzo said it recently expanded into the micro-enterprise lending segment through its investment in ZIEL Financial Technologies, which has a network of over 75 branches in Rajasthan, Uttar Pradesh, Haryana, Uttarakhand and Punjab.

Oxyzo’s consolidated profit after tax (PAT) almost tripled to INR 197.5 Cr in the financial year 2022-23 (FY23) from INR 69.3 Cr in the previous fiscal year. The fintech unicorn also reported an 82% jump in its operating revenue to INR 570 Cr in FY23 from INR 312.97 Cr in FY22.

The startup’s asset size stood at INR 5,578 Cr in FY23 and its loan book stood at over INR 4,800 Cr during the financial year.

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