Gurugram-based SME lending platform OfBusiness has secured $3.8 Mn (INR 25 Cr) in debt funding from Kotak Mahindra Bank.The funding comes as an extension to the $7.6 Mn (INR 50 Cr) working capital limit that the startup recently procured from the bank.
With the newly-raised debt funding from Kotak Mahindra, OfBusiness aims to further expand its reach across the country to encompass a larger number of asset-light MSMEs that are currently unbanked.
Commenting on the development, OfBusiness co-founder and CEO Asish Mohapatra said, “We aspire to be SME’s growth partner by adding value to the SME’s life beyond financing. When it comes to getting secured and unsecured credit or cost-effective raw material procurement, SMEs are fully dependent on informal channels and local distributors. With an NBFC license and right cost of capital through our debt lines, we are bundling innovative lending and procurement solutions to address growing needs of SMEs in the country.”
How OfBusiness Is Bringing SMEs Under The Umbrella Of Financial Inclusion
Founded in 2015 by Asish Mohapatra, Bhuvan Gupta, Chandranshu, Nitin Jain, Ruchi Kalra and Srinath Ramakkrushnan, OfBusiness is a technology-driven platform that couples lending with value added services as procurement and marketing. It serves as a single-window for SMEs to get secured and unsecured credit lines, which the SMEs can use for cost-effective procurement of raw material on the platform.
The platform also aggregates these raw materials, including metals, polymers, papers and electrical ancillaries, thereby passing a bulk of the aggregation benefits to the SME across 22 clusters. By providing ‘purchase financing’, OfBusiness guarantees end use of the credit lines. Additionally, the platform also helps SMEs to find new business opportunities through Tender information packets.
Underwriting of loans by OfBusiness is done by not only evaluating the financial data, but also several other alternate data sources of SME operations, which are contributed by the SME community of buyers and sellers.