Softbank-backed OfBusiness PAT zooms 130% to Rs 463 crore in FY23

OfBusiness, founded in 2015 by Asish Mohapatra, Vasant Sridhar, Bhuvan Gupta, Nitin Jain, Ruchi Karla, and Srinath Ramakkrushnan, has raised nearly $900 million in 11 funding rounds to date.

SoftBank-backed OfBusiness, which runs an online marketplace for construction materials and financing for small and medium enterprises, reported a 115 percent jump in its consolidated revenue at Rs 15,658 crore, with Profit After Tax (PAT) soaring 130 percent to Rs 463 crore in the financial year ended March 2023.

The company’s jump in revenue and PAT comes mainly on the back of its expansion into the marketplace with more value-added-products as well as its penetration into global markets during the last financial year.

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“The company has also expanded into global markets through export and imports which shall further add to the health and profitability of the platform,” OfBusiness’ cofounder Ashish Mohapatra said in a statement on October 26.

The firm’s total expenses during the year under review rose 115 percent to Rs 15,037 crore. The company’s employee benefit expense amounts to Rs 326 crore in FY23. Overall Ebitda rose 120 percent to Rs 998 crore.

OfBusiness, founded in 2015 by Asish Mohapatra, Vasant Sridhar, Bhuvan Gupta, Nitin Jain, Ruchi Karla, and Srinath Ramakkrushnan, has raised nearly $900 million in 11 funding rounds to date.

It has raised $802 million in 2021 alone. OfBusiness offers technology-led full-stack solution that spans material fulfilment, technology solutions and working capital financing to enterprises. It diversified its product suite and widened the customer base to include SMEs, mid-corporates, as well as new-economy companies.

Its revenue opportunity and match making marketing platform – Bidassist – has over 1.2 million registered users, OfBusiness’ statement said.
OfBusiness has been considering an IPO since December 2021, when it raised $325 million from existing investors Alpha Wave Global, Tiger Global Management, and SoftBank, increasing its valuation to $5 billion from $1.7 billion.

Initially, the SoftBank-backed firm planned an IPO in 2022, but Asish Mohapatra, its co-founder and CEO (chief executive officer), announced in August on CNN-News18's Bits to Billions that it had postponed its plans by at least three months. Mohapatra said that OfBusiness intends to go public in 2023.

OfBusiness’ financing platform, Oxyzo which provides cash flow-matched working capital solutions to SMEs had reported a consolidated Assets Under Management (AUM) of Rs 5000 crore for FY 23 and has recently expanded to various fee income adjacencies that makes it more relevant to its borrowers.

Oxyzo reported a 2.8X or nearly 185 percent jump in Profit After Tax (PAT) of Rs 197 crore in FY23 as against a PAT of Rs 69 crore reported in FY22 mainly on account of a rise in its total income.

“Going forward, as India is expanding rapidly in manufacturing and infrastructure, OfBusiness aspires to consolidate its leadership position in B2B by expanding its global footprint and going deeper into its supply chains through recent investments,” Mohapatra said.