Matrix-backed OfBusiness raises $200M led by Tiger Global Management

B2B commerce and financial services platform to use the funds to increase its dominant position in the raw material supply chains

1st October, 2021, New Delhi: OfBusiness, a technology-enabled B2B commerce and financial services platform, announced a $200M funding round (Series F) led by Tiger Global Management, with participation from existing investors Matrix Partners India, SoftBank Vision Fund 2 and Falcon Edge Capital, at a valuation topping $3 Billion.

OfBusiness operates across highly fragmented and deep B2B supply chains wherein its unique business model provides value addition to customers through a technology-led full-stack solution that spans raw material fulfilment, revenue growth opportunities and working capital financing.

Started five and a half years ago, the company is a leader in each of the nine B2B raw material supply chains (steel, non-ferrous, plastics, petrochemicals, industrial chemicals, textiles, food grains, nuts/ spices and building materials) it operates in. Its leadership extends across infrastructure (roads, housing, irrigation, etc.) and other manufacturing supply chains like engineering, food processing, heavy machinery, garments, industrial chemicals and capital goods. OfBusiness crossed the $1.2 B revenue run rate mark -- profitable and growing at 4x YoY -- in commerce by September 2021.

While the fulfilment platform provides cost-effective procurement, the company's financing platform, Oxyzo, provides cash flow matched financing to aid commerce. Over the last year, it has expanded into other supply chain products and structured finance, now ranging to larger and new age borrowers also. Oxyzo has a loan book of ~US$240M (growing 80% YoY), with a pre-tax RoA of over 6% and NPAs of ~1.2%. The financial services company has ~45 lenders across leading banks and non-banking financial companies (NBFCs).

The company has also built a strong tech backbone with two SaaS products that drive scale - a new opportunities marketing platform (Bidassist) that touches over 2.4M unique, actively engaged users and a business operating system for SMEs (SME Assist). Bidassist has now moved international with the sourcing of global tenders for Indian companies. The SaaS products, growing 2x YoY and independently profitable, increase the reach and engagement of the company with its users.

The above three businesses of the company work in tandem and act as data engines, service providers, lead acquisition services and risk management tools to each other. Hence, the company provides a full-stack, digital offering to its B2B users, increasing its relevance across the life cycle.

As India expands rapidly in manufacturing and infrastructure, buoyed by both regional and global tailwinds, OfBusiness aspires to build and consolidate its market leadership position. It aims to tap into more raw materials, geographies, marketing channels and other services. It is also expanding its offerings into semi-finished goods, private labels, and contract manufacturing.

Commenting on the development, Asish Mohapatra, CEO & Co-Founder, OfBusiness, said: "The India B2B markets across intermediaries, financial services and manufacturers are fast consolidating driven by technology and access to efficient debt capital. This is driven by massive tailwinds of global demand being diverted to India in the core sectors and supply consolidating in large players. We want to be at the forefront of this opportunity as these supply chains get remodeled, redesigned and/or recreated. We welcome Tiger Global to the family and aim to leverage their experience and muscle in global markets.'

The current fundraise is aimed at establishing its presence in the newer domains with several tuck in acquisitions, alliances and joint ventures in the pipeline. OfBusiness also intends to make several strategic investments into value-added services in the supply chain which add value to the product and services being delivered by its B2B network.

Griffin Schroeder, Partner, Tiger Global Management, said: "OfBusiness is rapidly digitizing raw material procurements across many categories in India. They have created a unique proposition for buyers that is faster, better and cheaper, by combining Commerce and Lending on a single platform. India's B2B market provides enormous opportunities, and we are excited to support OfBusiness in tackling them.'

Commenting on the fundraise, Vikram Vaidyanathan, Managing Director, Matrix India said, "We've been privileged to witness this outstanding growth journey as early partners. The exponential growth achieved with benchmark profitability further cements OfBusiness' position as the market leader of the B2B space. We welcome Tiger Global to the partnership and look forward to the near-term journey of creating an IPO scale institution.'

OfBusiness today operates across 20 locations across the country with its suite of services and its increasing its footprint steadily including its new foray into international imports in niche sectors in India. Its performance and value to customers withstood the uncertainty of Covid-19 crisis, with the company (and Oxyzo) gaining a triple notch upgrade to CRISIL A rating during the pandemic period.

About OfBusiness:
OFB Tech (OfBusiness) is a tech-enabled platform that facilitates raw material procurement and credit in the B2B markets with a focus on the manufacturing and infrastructure sectors. It integrates technology to enable B2B commerce - to make available better products, at better prices, in better timelines to customers with comprehensive online and offline support. Key raw materials include metals, chemicals, polymers, agri commodities, petrochemicals and building materials. OfBusiness provides access to cash flow-based financing for buying raw materials through its NBFC Oxyzo Financial Services. The company also offers tech-led marketing services through its Bidaasist platform for new growth opportunities.

About Matrix Partners India:
Matrix Partners India is an investment firm with approximately $1 billion under management. Founded in 2006, the firm invests in companies targeting the Indian consumer and enterprise market at the seed, early, and early growth stages. Matrix India has invested in several market-leading companies such as Ola (mobility), Razorpay (payments), OfBusiness (credit led B2B marketplace), Five Star Business Finance (SME lending), Ola Electric (electric vehicles), Stanza Living (tech-enabled student housing platform), OneCard (mobile-first credit card), Country Delight (D2C dairy & fresh foods brand), DealShare (social commerce platform), Jupiter (consumer Neobank), Mswipe (mobile POS), and Zupee (leading skill-based gaming app) among others. Matrix India has advisory offices in Bangalore, Delhi, and Mumbai. Matrix Partners has a global network of funds investing in the US, China, and India, with approximately $5 billion under management. Further information is available at www.matrixpartners.in. To know more about our investment philosophy & ideologies, check out the #MatrixMoments podcast series.