OfBusiness: A Silent Giant Transforming B2B Supply Solutions for Indian SMEs

OfBusiness: A Silent Giant Transforming B2B Supply Solutions for Indian SMEs

Overview

Company profile: OfBusiness (OFB Tech Pvt. Ltd.) is a Gurugram-based tech-enabled B2B commerce and fintech platform focused on serving small and medium enterprises (SMEs) in sectors such as infrastructure, manufacturing, construction, and agriculture.

Founding & IPO plans: Founded in 2015, the firm is gearing up for a potential IPO (tentatively targeted for FY26).

Business Model & Core Operations

Three verticals: OfBusiness operates through three integrated business verticals that together solve sourcing and financing pain points for SMEs: 
a. Raw Material Procurement: Bulk-buys essentials (like steel – ferrous & non-ferrous, chemicals and petroleum products, cement, and agri/food products) and supplies them to SMEs, reducing cost inefficiencies and simplifying logistics. 
 

b. Embedded Financing (via Oxyzo): Through its NBFC arm Oxyzo, the company offers collateral-free working capital loans directly linked to purchases made on the platform. Underwriting is data-driven, using transaction history and cash flows to assess risk. Oxyzo was spun off as a standalone unicorn in 2022, validating the financing model. 
 

c. SaaS & Tendering (BidAssist): The BidAssist platform helps SMEs discover government and private tenders, manage compliance, handle documentation, and improve bid win rates using analytics—adding a high-margin SaaS revenue stream.

Revenue Streams

Diversified revenue engines: OfBusiness does not rely on one income source; it earns from:

• Commerce margins on bulk-sourced materials
• Interest income from working capital loans (via Oxyzo)
• SaaS subscriptions (BidAssist)
• Commissions earned from OEMs and large manufacturers.

Financial Performance & Growth Drivers

FY25 revenue: OfBusiness reported Total Revenue of ₹22,241 crore for FY25, up 15% year-on-year versus FY24.

Key revenue contributors:

• Ferrous materials: ₹8,556 crore (growth from ₹7,354 crore)
• Non-ferrous materials: ₹4,543 crore (from ₹3,707 crore)
• Chemicals & petroleum products: ₹2,592 crore (from ₹1,561 crore)
• Agriculture & food products: ₹2,495 crore (compared with ₹3,427 crore)
• Interest income: ₹1,117 crore (from ₹816 crore)
  (Note: some categories such as apparel saw declines, while industrial and financing segments expanded.)

Performance Metrics & Financial Health

Profitability & margins: After FY23, OfBusiness’ margins have meaningfully expanded and then stabilized, indicating deeper operational maturity rather than hyper-growth at the expense of profitability.

Balance sheet trends: Borrowings have grown with scale (as expected for a commerce-plus-credit enterprise), but equity growth has kept pace, supporting overall financial robustness.

Cash flow progress: Operating cash flows remain negative but improving significantly, while net cash turned positive in FY25 and cash holdings increased sharply—signaling improved working capital discipline.

Investors, Valuation & IPO Outlook

Investor backing: OfBusiness is backed by marquee global investors, including SoftBank Vision Fund, Tiger Global, Matrix Partners, and Norwest Venture Partners.

Funding raised: The company has raised over $800 million cumulatively, recently valued around $5 billion.

IPO trajectory: A public listing, targeted for FY26, is expected to unlock value across both the commerce and fintech arms (especially post-Oxyzo’s standalone success).

Strategic Positioning

Market impact: OfBusiness is not a consumer brand, but it quietly underpins India’s industrial economy by addressing two critical SME challenges—procurement inefficiencies and working capital shortages—through a unified tech-driven platform that builds strong competitive moats, rich data assets, and scalable profit engines.