Industrial goods and services procurement platform OfBusiness has scooped up $325 million in its Series G round led by Alpha Wave Ventures II, Tiger Global Management and Softbank Vision Fund 2.
The company also has Norwest Venture Partners, Matrix Partners India, Zodius Technologies, Pantherea Growth Fund and Marshall Wace as its investors. The current round also includes a $140 million secondary sale.
According to OfBusiness, the fresh proceeds have been raised at a valuation of approximately $5 billion. The Gurugram-based company has recorded an over 6X jump in its valuation in the past eight months. The firm was valued at $800 million in April, $1.5 billion in July and $3 billion in September when it raised $200 million led by Tiger Global.
With this, the firm joins the hallowed group of firms like Razorpay, Swiggy, Dream11, Postman etc whose valuations have grown multiple times within 2021 to take them beyond $5 billion during the year.
The company will use the funds to penetrate deeper into supply chains on the commerce side, while also building out technology for its SAAS solutions and financing engine, said OfBusiness in a press statement.
OfBusiness further added that some early investors of the firm such as Zodius Tech, Matrix India and Creation Investments have made a partial exit in this financing round. The round also saw a partial liquidation for about 80 ESOPs holders.
Founded by Asish Mohapatra , Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar and Nitin Jain, the six-year-old company helps source raw material and provides companies with a portal to bid for government tenders. It also provides access to cash flow-based short term financing for buying raw materials through its NBFC Oxyzo Financial Services.
Unlike other unicorns and late-stage companies, OfBusiness has been profitable for the last four fiscal years. According to Fintrackr, OfBusiness’s operating revenue grew 2X to Rs 1,748 crore in FY21 as compared to around Rs 850 crore in FY20.
During the fiscal year ending March 2021, its profit increased by 72% to Rs 55.7 crore in FY21 as compared to Rs 32.3 crore in the previous fiscal (FY20).
OfBusiness commerce business competes with other unicorns like Moglix, Infra. Market, Zetwerk whereas in the lending business, it faces competition from large banks and non-banking financial companies (NBFCs).
Source:- https://entrackr.com/2021/12/ofbusiness-raises-325-mn-at-around-5-bn-valuation/