SMEs-focused online lending platform OfBusiness has raised Rs 200 crore in a series C funding round from Creation Investments and Falcon Edge. The Gurugram-based startup also saw participation from existing investors Matrix Partners India and Zodius Capital.
Besides, it has also picked up debt lines from Kotak Mahindra Bank, Tata Capital, RBL Bank and Northern Arc.
OfBusiness will use the fresh capital infusion to ramp up its loan book and grow its operations. It takes the total amount raised by the company to Rs 500 crore(mix of both debt and equity).
Founded in 2015, it helps SMEs in sectors such as auto ancillaries, power equipment vendors and capital goods manufacturers with raw material procurement and purchase financing, and other services such as quality check and transit insurance.
OfBusiness has extended loans to about 2,500 small enterprises working in the aforementioned sectors. The company also claims to have a total loan book of Rs 250 crore with a monthly disbursal of Rs 100 crore.
It provides collateral and non-collateral loans at the interest rates of about 1.5 per cent per month and has been able to restrict bad loans to around 0.5 per cent.
Apart from lending, the company also offer services like supplying of materials as well as provide companies with a portal to bid for government tenders. Through this, it generates revenue from lending as well as from service delivery business.
According to Asish Mohapatra, CEO, OfBusiness, The firm is growing at 10-15 per cent every year and has been profitable since December last year.
In October, last year, the SME financing, and product fulfillment platform had secured Rs 25 crore in debt funding from Kotak Mahindra Bank. Earlier, it had raised Rs 32 crore in January 2016 in a funding round led by Matrix, and Rs 71 crore in 2017 in a series B funding round led by Zodius.
The development was reported by ET.
