OfBusiness raises Rs 242.52 Cr at a valuation of Rs 1,905 Cr 

Tech-enabled lending space seems not to have impacted by the crisis in NBFCs and traditional lending space. After InCred and Lendingkart, another lender OfBusiness has raised Rs 242.52 crore Series D round led by Norwest Venture Partners. 

The Palo Alto-based growth equity investment firm has invested Rs 214.50 crore while existing investors Falcon Edge and Matrix Partners put in about Rs 26 crore and Rs 1.87 crore respectively in the Series D round.

According to filings with MCA, OfBusiness has allotted 3,632 Series D CCPS and 106 equity shares at Rs 6,49,002 share each. Post investment, Matrix holds a 14.2% stake, followed by Norwest that owns 11.27%. Falcon Edge commands about 4.95% stake in the firm.

OfBusiness provides collateral-free loans to merchants that require working capital requirement at a coupon rate of 1.5%. Besides financing, it helps in sourcing raw material and provides companies with a portal to bid for government tenders. 

Almost 14 months ago, the Gurugram-based firm had raised Rs 200 crore in Series C round from led by Creation Investments. According to its website, the platform has business worth over 1,000 crore with a network of 100 plus suppliers and 1,100 clients.

An Entrackr estimate shows that OfBusiness is valued about Rs 1,905.53 crore ($268.4 million) in the Series D round.

Over the past few months, tech-enabled lenders and marketplaces didn’t find much trouble in raising follow-on rounds. While Lendingkart closed $30 million fresh round (appeared to be a bridge round) led by existing investors, Incred had managed to score about $85.89 million Series D round led by NDFC.

Indifi - a marketplace that connects merchants with a working capital requirement to lenders - raised $21 million worth fresh round in July this year. OfBusiness counts Capital Float, Incred and several other SME focused lenders as direct competitors. Indifi and other marketplaces are its indirect competition.