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OfBusiness converts into public company ahead of IPO

The board at OfBusiness has approved a resolution to change its status to a public company and rename it from "OFB Tech Private Limited" to "OFB Tech Limited".

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Kunal Manchanada
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Industrial goods and services procurement platform OfBusiness is preparing for a definitive initial public offering (IPO) in 2025. The company has taken its first significant step toward going public by converting into a public entity.

The board at OfBusiness has approved a resolution to change its status to a public company and rename it from "OFB Tech Private Limited" to "OFB Tech Limited," according to its regulatory filing.

OfBusiness is reportedly aiming to raise up to $1 billion through its IPO, which will consist of both primary components and an offer for sale (OFS). The company is in discussions with Bank of America, Citi, JP Morgan, and Morgan Stanley to serve as its merchant bankers.

SoftBank was also planning to provide a $100 million partial exit to Alpha Wave and Z47 (formerly Matrix Partners India) ahead of the initial public offering.

Founded by Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar, and Nitin Jain, the company supplies raw materials across various supply chains including steel, non-ferrous, petrochemicals, polymers, industrial chemicals, Agri products, and building materials, among others.

Ofbusiness has raised over $650 million to date across rounds including its $325 million led by Alpha Wave, Tiger Global, and SoftBank at a valuation of $5 billion. According to the startup data intelligence platform TheKredible, Alpha Wave is the largest external stakeholder with 19.16% 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 15343 crore in FY23. Moreover, its profits saw a 30.2% YoY growth which stood at Rs 603 crore for the same period.

OfBusiness competes with Zetwerk, Infra.Market, and Moglix. Infra.Makret and Moglix recorded Rs 14,530 crore and Rs 4,964 crore gross revenue during the last fiscal year (FY24). Zetwerk has yet to report its annual statements for FY23, however, its GMV was at Rs 11,449 crore GMV in FY23.

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