NEW DELHI: Matrix Partners-backed SME financing and product fulfilment platform OfBusiness has secured an additional debt funding worth Rs 25 crore from Kotak Mahindra Bank.
This debt is in addition to the existing Rs 50 crore working capital committed by the bank taking its working capital limit to Rs 75 crore. The startup, which started operations in January 2016, had raised $5 million at the inception stage from Matrix Partners and a host of angel investors.
In January this year, it raised $11 million in Series B from Zodius Technologies with participation from existing investors.
OfBusiness, which caters to 22 SME clusters across 7 states in the country, will use the additional funds for geographical expansion to 10 more SME clusters by end of this year and deepening presence in current and newer sectors. The startup will also ramp up its technology platform BidAssist.
As per Asish Mohapatra, CEO, OfBusiness which claims to have a monthly disbursement rate of Rs 40 crore, the company is chasing a monthly disbursal rate of Rs 100 crore by end of this fiscal.
The company essentially helps SMEs in sectors such as auto ancillaries, power equipment vendors and capital goods manufacturers with raw material procurement and purchase financing, besides other services such as quality check and transit insurance