IPO-bound OfBusiness raises Rs 100 Cr led by Cornerstone Ventures

Industrial goods and services procurement platform OfBusiness, which is set to launch its initial public offering (IPO) in the second half of 2025, has raised Rs 100 crore (about $11.7 million), led by Cornerstone Ventures.

Prior to this, OfBusiness had raised over $650 million across various rounds, including a $325 million round led by Alpha Wave, Tiger Global, and SoftBank, at a valuation of $5 billion.

Cornerstone made this investment through its $200 million second fund. The investment vehicle, launched last year, marked its first close at $40 million in January and aims for a second close by the end of this year.

The proceeds will be used to drive digital adoption and financing access for small and medium enterprises (SMEs), OfBusiness said in a press release.

Co-founded in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain, OfBusiness provides raw material procurement and financing solutions to SMEs operating in the manufacturing and infrastructure sectors through its platform.

According to the startup data intelligence platform TheKredible, Alpha Wave is the largest external stakeholder with a 19.16% stake, followed by Creation Investment and Matrix. SoftBank, Norwest, and Tiger Global are other notable stakeholders in OfBusiness.

During the fiscal year ending March 2024, the company recorded a 25.8% year-on-year increase in revenue to Rs 19,296 crore from Rs 15,343 crore in FY23. Moreover, its profits saw a 30.2% YoY growth, reaching Rs 603 crore for the same period.

OfBusiness competes with Zetwerk, Infra.Market, and Moglix. Infra.Market and Moglix recorded Rs 14,530 crore and Rs 4,964 crore in gross revenue, respectively, during the last fiscal year (FY24).