Exclusive: OfBusiness raises Rs 200 Cr at Rs 3,200 Cr valuation

SME financing firm OfBusiness has raised around Rs 200 crore in what appears to be an extended part of the Series D round from existing investors, regulatory filings show.

The Gurugram-based firm has passed a special resolution to allot 1,958 Series D1 preference shares at an issue price of Rs 10,21,663.6 per share to raise Rs 200.06 crore from Creation Investments, Norwest Venture Partners, Alpha Wave Incubation and Matrix Partners.

Norwest had led a Rs 242 crore Series D round in OfBusiness in September 2019.

Creation has invested Rs 70.91 crore in the current round followed by Norwest and Alpha Wave which have pumped in Rs 56.81 crore and Rs 45.4 crore. OfBusiness’ early backer Matrix Partners has put in Rs 27 crore in the round.

Fintrackr’s calculations show that OfBusiness has achieved a 68% jump in its valuation to Rs 3,200 crore in this round from Rs 1,905 crore in the previous financing.

OfBusiness provides collateral-free loans of up to Rs 2 crore to merchants that have working capital requirements. Besides financing, it also helps in sourcing raw material and provides companies with a portal to bid for government tenders.

According to the company’s website, it has onboarded around three dozen debt partners including Axis Bank, ICICI, SIDBI, RBL Bank, Tata Capital and has over 5,000 clients and more than 2,000 suppliers on the platform. 

Fintrackr has also decoded the company's current shareholding pattern in which the company’s founders -- Bhuvan Gupta, Ruchi Kalra and Asish Mohapatra -- have diluted their stake from 30.76% to 28.66%. The company has two more co-founders, Vasant Sridhar and Nitin Jain.

It’s worth noting that Jain has been appointed as the co-founder and CEO of O’Agrifarm, a new unit of OfBusiness that provides agriculture fulfilment and financing. He has been leading the new subsidiary for the past 11 months. The shareholding of Jain and Sridhar couldn’t be ascertained.

Creation has emerged as the largest stakeholder among investors with an 18.11 % stake in OfBusiness followed by Matrix and Norwest with 17.15% and 12.62% stake, respectively. Alpha Wave holds 10% equity in the six-year-old company.

In FY20, OfBusiness saw an 88% jump in its profits to Rs 32.29 crore. The company also recorded a 34% jump in revenue from operations to Rs 849.8 crore from Rs 635 crore in the previous fiscal year. Total expenditure during the last fiscal stood at Rs 815 crore.

Over the past year, B2B e-commerce and SME financing segments have been witnessing high demand due to the pandemic. As a result, investors are bullish about the sector. It could be noticed from Udaan’s $280 million recent financing round. According to Entrackr sources, the Bengaluru-based company is also in talks to raise one more round soon. Last week, another B2B platform Infra.Market had mopped up $100 million and entered the coveted club of unicorn.