Matrix-backed OfBusiness raises $325M

21st December 2021. New Delhi: OfBusiness, a technology-enabled B2B commerce and financial services platform, announced a $325M funding round led by Alpha Wave Incubation, Tiger Global Management and Softbank Vision Fund 2. The company also has Matrix Partners India, Norwest Venture Partners, Creation Investments, Zodius Technologies, Pantherea Growth Fund and Marshall Wace as its investors from previous financing rounds.

Founded over five years ago, the company's full-stack model spans raw material fulfilment in its B2B marketplace, working capital financing solutions and other value add- integrated SaaS products. This unique approach has helped establish its position as a market leader across each of the nine B2B raw material supply chains it operates in. The company has also recently diversified into new segments, such as, health foods, food processing, garments, exports and international sourcing, as well as semi-finished metal goods.
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Oxyzo, the company's financing platform that provides cash flow matched financing to aid commerce clients, has recently launched into various fee income adjacencies that make it more relevant to its borrowers. It has been profitable since its inception and is supported by ~45 financial institutions as debt partners. Both Oxyzo and OfBusiness are A+ rated by all the major rating agencies of India. During the fiscal year ending March 2021, OfBusiness's operating revenue grew to INR 1,748cr and profit increased to INR 55.7cr. The company continues to grow at over 300% YoY.

The company's SaaS offerings, Bidassist and SME Assist, have now grown organically to 2.7M unique users collectively, making it India's largest and most engaged scale platform for SMBs looking for revenue opportunities and software for ERP, manufacturing, finance and procurement.

The above three businesses of the company work in tandem creating a healthy virtuous cycle at scale. Through this capital infusion, the company intends to penetrate deeper into supply chains on the commerce side, while also building out technology for its SaaS solutions and financing engine. The round also saw a partial liquidation for ~80 ESOP holders.

Commenting on the development, Asish Mohapatra, CEO & Co-Founder, OfBusiness, said: "OfBusiness is well on its way to create a B2B ecosystem that marries large scale with profitability, health and engagement. Our march in the last 3 years across all our 3 businesses (B2B Commerce marketplace, Financing and SaaS) has been rapid but there is still a long way to go given the depth and unorganized fragmented market structure of B2B in India. We believe that we are in the nascency of the B2B revolution in the country and are privileged to drive it ahead.'

Commenting on the fundraise,'¯Vikram Vaidyanathan, Managing Director, Matrix India said, "We've been fortunate to have a ringside seat to this journey with OfBusiness from day zero. The outstanding growth achieved at high profitability and scale, by the OfBusiness management team, further reinforces the company's position as the market leader of the B2B space. We believe they're just getting started on their path to creating an IPO-ready institution.'

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), Dailyhunt (mobile local language platform), Razorpay (payments), OfBusiness (B2B Commerce, Fintech), 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), 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.