Funding · Commerce & Consumer Brands

OfBusiness plans $150-200 million funding round

By Startup Enthusiast · 23 November 2023

What they do

OfBusiness is a B2B marketplace supplying metals, chemicals, and building materials to manufacturers

It is raising $150-200 million at a $6 billion valuation, with some early backers selling shares

The round includes secondary sale (existing shareholders sell shares; no new money reaches the company)

OfBusiness is approaching sovereign wealth funds, PE funds, and crossover funds to raise $150-200 million.
The target valuation is $6 billion, down from an earlier expectation of $8-9 billion due to market conditions.
The round will be a mix of primary and secondary funding; some early backers are selling shares at a 15-20% discount to the last valuation.
The company plans an IPO in the next 12-24 months but will wait for liquidity to improve.
OfBusiness has raised nearly $900 million across 11 rounds, including $802 million in 2021 alone.
The 2021 round of $325 million was led by Alpha Wave Global, Tiger Global, and SoftBank Vision Fund 2.
Investment bank Avendus has been appointed to manage the process.
Founder Asish Mohapatra denied the company was looking to raise money.

Venture funding in India dropped to about $9 billion in the first nine months of 2023 from $19.8 billion in the same period of 2022.
The largest 2023 funding was Lenskart's $600 million at a $4 billion valuation.
B2B segment peers like Zetwerk and InfraMarket are also profitable and attracting investor interest.

OfBusiness is a B2B marketplace for manufacturing and infrastructure companies, supplying metals, chemicals, agricultural commodities, and building materials.
It offers BidAssist for government procurement, with 2,000+ tender sources and 13,000+ daily tenders.
The company has delivered 1 million+ orders and serves 1.5 million+ SMEs across India and 70+ countries.
FY23 revenue from operations was ₹15,342.5 crore, up from ₹7,139.5 crore in FY22.
FY23 net profit was ₹463.2 crore, up from ₹201.1 crore in FY22.

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