OfBusiness raises $160 Mn led by SoftBank at $1.6 Bn valuation

Business to business e-commerce platform OfBusiness has raised a new round from SoftBank Vision Fund II and existing investor Alpha Wave Incubation. This is the second investment round for the Gurugram-based startup in 2021 which scooped up $110 million in a round led by Alpha Wave in April.

OfBusiness has allotted 41,675 of Series E CCPS at a face value of Rs 10 and a premium of Rs 28,3585.11 per share to raise Rs 1,181.85 crore or $160 million, regulatory filings show. SoftBank has spearheaded the round with an investment of $151 million whereas Alpha Wave invested the remaining.

OfBusiness was reportedly in talks with SoftBank to raise a new round at around $1.5 billion valuation. According to Fintrackr’s estimates, the Asish Mohapatra-led company has reached the post-money valuation of $1.57 billion or Rs 11,700 crore.

This essentially means that OfBusiness’ valuation has jumped two-fold within four months. It was valued at around $800 million during the $110 million Series D2 round in April.

Following the transaction, Softbank has acquired 9.62% stake in the company while Alpha Wave has increased its stake to 10.62%. Meanwhile, co-founders have diluted their collective holdings from 28.58% to 25.68%. 

The fresh round also makes OfBusiness the 18th startup that has turned into a unicorn in 2021. Earlier this week Droom claimed that it reached a valuation of $1.2 billion as the Singapore registered company kicked off a new round. Last week, logistics company BlackBuck also raised a fresh round and entered the coveted club of unicorns.

Out of 18 unicorns, seven startups that became unicorns this year are in the B2B business. The list includes OfBusiness, BlackBuck, Browserstack, Moglix, Zetwerk, Zeta and Infra.Market.

Seven-year-old OfBusiness helps source raw material and provides companies with a portal to bid for government tenders. It also provides collateral-free loans of up to Rs 2 crore to merchants. According to the company’s website, it works with Godrej, Zomato and Reliance Industries to ease the process of the agri-product supply chain and has more than 5,000 clients and over 2,000 suppliers on the platform.

Last month, OfBusiness also expanded its employee stock ownership plan or ESOP to take the total ESOP pool size to Rs 282 crore or $38.5 million. Entrackr had exclusively reported the development on June 15.

This is SoftBank’s sixth investment in 2021. Last Week, the Japan-based investor had co-led a $1.25 billion round in foodtech major Swiggy. E-commerce marketplace Flipkart, social commerce platform Meesho, new age banking tech company Zeta and digital adoption solutions provider Whatfix have also raised funds from Vision Fund II since January 2021.

Update: We have removed the details of bonus allotment on request on OfBusiness' founders.