- OfBusiness – a business-to-business commerce company – announced it has raised $207 million in funding. These are the details.
OfBusiness – a business-to-business commerce company – announced it has raised $207 million in funding led by Tiger Global. OfBusiness cofounder and CEO Asish Mohapatra also told ET that SoftBank and Alpha Wave also participated in the fundraising.
OfBusiness is known as a tech-enabled platform that facilitates raw material procurement and credit for SMEs with a focus on the manufacturing and infrastructure sectors. And the company integrates technology to SME’s buying behavior to make available better products at better prices in better timelines to customers with comprehensive online and offline support. The key raw materials include metals, chemicals, polymers, agri commodities, petrochemicals, and building materials. OfBusiness offers SMEs access to cash flow-based financing for buying raw materials through its NBFC “Oxyzo Financial Services.” And the company also offers a host of tech services for SMEs including BidAssist for new growth opportunities.
This round of funding values the company at around $3 billion. This is about double the valuation from the company’s previous round in July when the SoftBank Vision Fund II led a $160 million round in the company.
“Since SoftBank invested in us, we have grown 2.5 times by revenue. Over the last three months, we continue to grow 30% on a month-on-month basis,” said Mohapatra via ET. And Mohapatra said the company is planning to expand operations. Plus the company is in the middle of closing several acquisitions.
Mohapatra said that the company has been profitable. But acquisitions will increase their profit margins into double digits.
OfBusiness said that the company typically earns margins of 5% to 10%. But the acquisitions could help drive up the margins up to the early teens and to about the 20% market. Launched five years ago, OfBusiness is now at an annual revenue run rate of $1.4 billion.