Matrix-backed Oxyzo Financial Services raises $200M Series A

23rd March 2022. New Delhi: Oxyzo Financial Services, a tech-enabled smart financing solution provider, announced its $200M Series A raise led by Alpha Wave and co-led by Matrix Partners India, Tiger Global, Norwest Venture Partners and Creation Investments.

Oxyzo started as OfBusiness Group's financing platform that provided cash flow matched working capital financing for buying raw materials for SMEs in the traditional sectors of the economy as manufacturing and sub-contracting. In the next phase of its growth, Oxyzo expanded to value chains beyond OfBusiness' B2B raw material platform with a diversified product suite and a broader customer base to include SMEs, mid-corporates, as well as the new age economy. With this, the company has now leveraged its strong supply chain data warehouse, basis its cumulative disbursements of $2B+ across 30,000+ nodes to build a digital supply chain and embedded finance marketplace that aims to solve for the under-penetrated formal credit in the B2B economy.

Oxyzo has grown to an AuM of $350M with a 100% Y-o-Y growth while maintaining its GNPA at 1.2% even through the Covid period. The company has leveraged proprietary tech systems to ensure proactive monitoring and operating efficiencies at scale resulting in the business having a best-in-class Opex of 2.5%. Further, Oxyzo's recently launched fixed income and securities business line has achieved a cumulative market volume of $1.6B+ in the last 6 months. Oxyzo has been profitable since its inception and currently at a 5.5%+ pre-tax RoA.

As commented by Asish Mohapatra, OfBusiness Group CEO, "Oxyzo, has inherited the highest standards of Corporate Governance and Compliances from its parent OfBusiness, which has been instrumental in both entities becoming earliest to be rated A+ (by ICRA), in their respective categories. Both OfBusiness and Oxyzo have a strong borrowing profile enjoying confidence across 50+ financial institutions. The company believes that the growth of fresh talent coupled with the right risk experience and architecture has been at the heart of innovation and execution.'

Commenting on the raise, Ruchi Kalra, Co-founder and CEO Oxyzo said, "With the emergence of the digital economy, we see a marked shift in the emerging needs and servicing approach in the B2B segment. We want to be at the forefront of this as a diversified financial services company, differentiated through its innovative financial products and digital platforms on the back of strong credit and origination capabilities. We are very excited about our next phase of growth as we further embed ourselves digitally into the SME, mid-corporate and the new age supply chains.'

Oxyzo aims to continuously innovate in B2B financial services space through end-to-end capabilities across origination, deployment, curated structuring and distribution enabled through technology. The funds will be used to expand Oxyzo's broader digital financial services play organically and inorganically across a strong own balance sheet play, scaling the supply chain marketplace, launching innovative fixed income products for the SME space, and scaling other fee incomes business lines including debt capital markets and securities.

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 and Oxyzo from day zero. Oxyzo's excellent execution coupled with a strong focus on asset quality sets it apart in the fintech landscape. We believe the management team is just getting started on their path to creating an IPO-ready institution and are excited to renew our partnership.'

Commenting on the raise, Navroz D. Udwadia, Co-founder and Partner at Alpha Wave Global, said, "We are pleased to back Ruchi, Vasant and team as they scale Oxyzo to become India's leading platform focused on SME supply chain financing and structured products. We've been fortunate to be their partners for a while, and have seen an impressive scale-up with best-in-class risk management despite strong headwinds from Covid. We look forward to helping build a high-single-digit RoA business that compounds over a long runway.'

Griffin Schroeder, Partner, Tiger Global, stated, "We're excited to support Oxyzo as it steps out of the Group's shadows to disrupt the digital financial services space. As the B2B landscape in India evolves, OfBusiness and Oxyzo will be twin pillars to open up opportunities and lower costs for millions of SME's across India."

Niren Shah, Managing Director and Head, Norwest Venture Partners India, stated, "We have been delighted with our early investment in Ofbusiness and feel privileged to get an opportunity to partner with them once again, this time co-leading a $200M round to fund Oxyzo, the SME Fintech business. We are impressed with how the Oxyzo team has built a high growth business with robust corporate governance and are even more excited with their vision to build this into India's most profitable, tech-driven, B2B SME fintech player. We are proud to congratulate Ruchi on becoming the first female founder in India of a profitable, fintech unicorn!'

About Oxyzo:
Oxyzo Financial Services is a tech-enabled supply chain and embedded finance marketplace that aims to solve for the under-penetration of formal credit in the B2B economy. Oxyzo, has inherited highest standards of Corporate Governance and Compliances from its parent OfBusiness, which has been instrumental in both entities becoming earliest to be rated A+ (by ICRA), in their respective categories. Both OfBusiness and Oxyzo have a strong borrowing profile enjoying confidence across 50+ financial institutions. Oxyzo through its innovative capabilities across origination, deployment, curating structuring and distribution is now launching multiple products for the SME space while scaling other fee income business lines including debt capital markets and securities. For more information, visit www.oxyzo.in

About Matrix Partners India:
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 financial services companies, such as, Razorpay (payments and SME Neobank), OfBusiness (B2B Commerce, Fintech), Five Star Business Finance (SME lending), Mswipe (mobile POS), OneCard (mobile-first credit card), LiquiLoans (P2P lending), Jupiter (consumer neobank) and GoKwik (e-commerce enablement platform).

Other marquee investments include Ola (mobility), Dailyhunt (mobile local language platform), Ola Electric (electric vehicles), Stanza Living (tech enabled student housing platform), DealShare (social commerce platform), Country Delight (D2C dairy & fresh foods brand), Captain Fresh (seafood marketplace), Bijnis (B2B platform for factories), MoEngage (SaaS) 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, check out the #MatrixMoments podcast series.