technology

OfBusiness in talks with SoftBank to raise funds at $1 billion valuation


Bengaluru: SoftBank Vision Fund is on a dealmaking spree in India.

After social commerce startup
Meesho and banking technology platform Zeta, the Japanese technology focused investor is eyeing a stake in OfBusiness, sources close to the matter said. The B2B e-commerce platform, is in talks with SoftBank to raise $100-$150 million at a valuation of over $1 billion, two people in the know said.

OfBusiness, which recently closed a $97 million funding round led by Falcon Edge was valued at around $800 million in April. ” SoftBank could put anywhere between $100-150 million in an all-primary round,” a source in the know said. The company is clocking an annual gross merchandise volume, or GMV run-rate of around $1.5 billion. OfBusiness is one of the leading B2B firms in the raw material supply chain space. In its April funding round, some of its angel investors and employees sold shares taking the total round size to $113 million.

So far, a record 14 unicorns have been birthed in India due to increased availability of global capital coupled with bullish investor sentiment espeically for market leaders in fast growing sectors.

If the financing goes through, it would be another B2B startup joining the unicorn club this year following the likes of Moglix, Infra.Market, among others.

Accel Partners-backed Zetwork is another prominent startup in the space which competes with OfBusiness.

When contacted by ET, Asish Mohapatra, cofounder and CEO of OfBusiness as well as a spokesperson for SoftBank declined to comment .

OfBusuiness counts Matrix Partners India, Creation Investments, and Norwest Venture Partners as its existing investors. Mohapatra recently told ET that it was preparing for an initial public offering (IPO) in the next two years. The company has been profitable for more than three years and is planning to grow its revenue by three-fold this year as it expands operations using the new capital. It operates out of 14 offices across India with over 600 employees and is looking to hire another 100.

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Founded in 2015, OfBusiness offers raw material procurement service and credit to small and medium enterprises (SMEs) through its non-banking financial company (NBFC) Oxyzo Financial Services. Over the last year, the company raised $200 million in debt across its 40 lending partners such as IDFC First Bank Ltd., Kotak Mahindra Bank Ltd., ICICI Bank Ltd. and HDFC Bank Ltd.

It focuses on the manufacturing and infrastructure sectors. Its NBFC and B2B platforms have a customer base of around 9,000. The six-year-old startup also offers marketing services through its BidAssist platform, which has close to 2 million unique customers.



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