Funding · Financial Services

OfBusiness raises ₹200 crore in extended Series D

By Startup Enthusiast · 5 March 2021

What they do

OfBusiness provides collateral-free loans and raw material procurement to small businesses

It raised ₹200 crore from existing investors including Creation Investments and Norwest Venture Partners

The company's valuation jumped 68% to ₹3,200 crore, reflecting strong demand for SME credit

OfBusiness raised ₹200 crore as an extension of its Series D round.
The funding came from existing investors Creation Investments, Norwest Venture Partners, Alpha Wave Incubation, and Matrix Partners.
Creation Investments contributed ₹70.91 crore and became the largest shareholder with 18.11% stake.
Norwest Venture Partners put in ₹56.81 crore, Alpha Wave Incubation ₹45.4 crore, and Matrix Partners ₹27 crore.
The company issued 1,958 Series D1 preference shares at ₹10,21,663.6 each.
OfBusiness's valuation rose 68% to ₹3,200 crore from ₹1,905 crore in the previous round.
Founders Bhuvan Gupta, Ruchi Kalra, and Asish Mohapatra saw their collective stake dilute from 30.76% to 28.66%.

The pandemic boosted demand for B2B e-commerce and SME financing, as seen in large rounds by Udaan and Infra.Market.
OfBusiness's FY20 profit jumped 88% to ₹32.29 crore, and revenue grew 34% to ₹849.8 crore.
The company is in talks to raise another round soon, per sources.

OfBusiness offers collateral-free loans up to ₹2 crore to small and medium enterprises (SMEs).
It also helps SMEs source raw materials and bid for government tenders through its portal.
The platform serves industries including metals, chemicals, apparel, and food processing.
It has over 5,000 clients and over 2,000 suppliers on its platform.
The company has delivered over 1 million orders and empowered 1.5 million+ SMEs.
It operates across 26 states in India and serves 70+ countries.
OfBusiness has 34 apparel manufacturing units, 5 each for metals and chemicals, and 6 for food processing.
It lists over 3 lakh active tenders and has processed 4 crore+ tender results.
The company partners with ~36 debt providers including Axis Bank, ICICI, SIDBI, RBL Bank, and Tata Capital.

Creation Investments (lead) — Became the largest investor with 18.11% stake after this round.
Norwest Venture Partners (participated) — Holds 12.62% stake after this round.
Alpha Wave Incubation (participated) — Holds 10% stake after this round.
Matrix Partners (participated) — Holds 17.15% stake after this round.

Product: Marketplace platform connecting SMEs to commodities including steel, metals, chemicals, agricultural products, textiles; includes financing and supply chain services
Customers: Small and medium enterprises seeking streamlined access to commodities, financing, and logistics
How it makes money: B2B marketplace model with commission on transactions and financing services
What sets it apart: Diversified vertical portfolio including apparel exports to top global retailers; operates across 75 countries