Industrial goods and services procurement platform OfBusiness on Monday said that it has raised $325 million in its Series G round led by Alpha Wave Ventures II, Tiger Global Management and Softbank Vision Fund II.
The current round also includes a $140-million secondary sale. To date, OfBusiness has raised more than $800 million in funding from investors such as Norwest Venture Partners, Matrix Partners India, Zodius Technologies, Pantherea Growth Fund and Marshall Wace as its investors.
The Delhi-based start-up is valued at $5 billion in the current round, up from around $3 billion as of September 2021. OfBusiness was the 18th start-up to reach the $1-billion valuation milestone earlier this year after raising around $360 million in two rounds led by SoftBank and Tiger Global within a span of two months this year.
The company’s back-to-back funding rounds come during an unprecedented uptick in startup funding, alongside several matured start-ups like Zomato, Paytm and CarTrade going public in recent months at multi-billion-dollar valuations.
The start-up will use the funds to penetrate deeper into supply chains on the commerce side, while also building out technology for its SAAS solutions and financing engine, OfBusiness said in a statement.
The company added that some early investors of the firm such as Zodius Tech, Matrix India and Creation Investments have made a partial exit in this financing round. Around 80 Esop holders also liquidated their holdings in the current funding round.
Founded by Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar and Nitin Jain in 2015, the start-up helps businesses and manufacturers source raw material and provides companies with a portal to bid for government tenders. It also provides cash flow-based short-term credit to buyers for purchasing raw materials through its registered NBFC Oxyzo Financial Services.
“OfBusiness is well on its way to create a B2B ecosystem that marries large scale with profitability, health and engagement. Our march in the last three years across all our three businesses (B2B Commerce marketplace, Financing and SAAS) has been rapid but there is still long way to go given the depth and unorganised fragmented market structure of B2B in India. We believe that we are in the nascency of the B2B revolution in the country and are privileged to drive it ahead,” OfBusiness co-founder Mohapatra said in a statement.
The start-up doubled its operating income during the fiscal ended March 2021, which helped increase its profits by 72% when compared to the previous financial year. During the fiscal ended March 2021, its profit stood at Rs 55.7 crore.
OfBusiness’s operating revenue for FY21 increased by 2X to Rs 1,748 crore compared to around `850 crore in FY20. Its sales figure more than doubled to Rs 1,494.1 crore in FY21 compared to Rs 665.6 crore in FY20.