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OfBusiness valued at nearly $ 5 billion after new $ 325 million fundraising

By on December 20, 2021 0

OfBusiness, a commodity sourcing and corporate finance platform, has raised $ 325 million at a valuation of $ 5 billion, a senior company executive said on Monday.

Series G, OfBusiness’s fourth fundraiser this year, was led by Alpha Wave Ventures II, Tiger Global Management and SoftBank Vision Fund 2. Total funds raised include a side sale worth $ 140 million. dollars, which saw the participation of early investors and employee shareholders.

The company raised $ 160 million in a July funding round led by SoftBank Vision Fund 2 for a valuation of $ 1.5 billion, marking its entry into the growing list of Indian unicorns. The industrial commodities seller quickly doubled its valuation to $ 3 billion in September, when it raised $ 207 million from investors led by Tiger Global.

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According to co-founder Nitin Jain, OfBusiness plans to use the funds to diversify its business, gain a foothold in export markets, strengthen its financial services and credit business, and enter the manufacturing segment.

Jain added that the company is also considering an initial public offering by 2022 and is looking to be listed on local stock exchanges. However, he declined to share further details.

With the latest fundraising, the company will also explore investing in profitable small and medium-sized enterprises (SMEs) that manufacture industrial goods to optimize the use of their assets and strengthen its supply chain operations.

Jain declined to comment on the number of SMEs the company plans to invest in.

Founded six years ago, OfBusiness is a technology platform that facilitates the sourcing of raw materials and credit in business-to-business (B2B) markets, with a focus on the manufacturing and infrastructure sectors. It enables B2B commerce on its platform to help customers get better products at competitive prices while on time through online and offline support.

“We have noticed that SMEs only operate at 50% of their capacity and lack the resources to increase their production. Therefore, by partnering up and investing in them, we realized that we can help them increase their profitability through a leap in usage while ensuring that they multiply. Through investments, we will look at upstream integration, help SMEs use their dead assets for goods that we also sell and distribute, ”Jain added in an interview.

Currently, OfBusiness reports a monthly gross value of goods (GMV) of $ 120 million, a jump of 41% from August of this year. The company plans to end the current fiscal year with a monthly GMV run rate of $ 180-200 million.

Newer categories, including raw materials for agriculture, food processing, and garment industries, contribute about 25% of the company’s monthly GMV.

The company is looking to add new products and storage units for the chemical and steel industries in the coming months. It has an active base of 2,500 suppliers and serves more than 80 cities in India.

In recent months, OfBusiness has entered overseas markets including the Gulf Cooperation Council (GCC) region and Australia. It aims to launch its service in more countries, including Canada, by supplying raw materials in the food processing and clothing sector.

The company will also seek to diversify from credit and offer new financial products to its supplier base. Currently, the company provides secured and unsecured loans to its supplier base through its NBFC branch. OfBusiness will also add 120 employees to its 800-member team over the next 4-5 months, Jain added.

The company reported sales of ??1,748 crore and a profit of ??55.7 crore for the year ended in March.

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