OfBusiness, an NBFC which lends to small and medium enterprises, has raised Rs 250 crore led by Norwest Venture Partners along with existing backers — hedge fund Falcon Edge and venture firm Matrix Partners India. With this round of funding, the company has raised a total of Rs 1,500 crore in debt and equity till now.
OfBusiness is focusing on purchase finance in sectors like manufacturing and infrastructure, working as an alternative to distributor financing.
The company was founded in 2015 by Asish Mohapatra, a former director at Matrix Partners, Bhuvan Gupta, former VP (engineering) at Snapdeal and former McKinsey partner Ruchi Kalra.
“We are always looking to make investments in robust and differentiated businesses and OfBusiness has been a pioneer in the lending space, which uses its B2B fulfilment platform to extend purchase financing to SMEs,” said Niren Shah, MD and India head at Norwest. The firm has also backed other NBFCs like Veritas Finance, Shriram City Union, Ess Kay Finance and Cholamandalam previously.