OFB Tech, which operates business-to-business (B2B) platform OfBusiness, has concluded its Series D2 funding round of $110 million led by Falcon Edge Capital, according to ET report. Post funding, the company’s valuation reaches $800 million. OfBusiness is a new age fintech startup which provides smart financing to SMEs.
Existing investors Matrix Partners India, Creation Investments, and Norwest Venture Partners also participated in the funding round.
The capital-raising round, a mix of primary and secondary transactions, saw 73 employees and 12 angel investors sell stock worth $13 million. So far, the startup has raised $170 million, including the latest funding round.
The six-year-old startup is readying for an initial public offering (IPO) in the next two years, co-founder and Chief Executive Officer Asish Mohapatra said, adding that the company has been profitable for more than three years.
Founded in 2015, OfBusiness offers raw material procurement service and credit to small and medium enterprises (SMEs) through its non-banking financial company (NBFC) Oxyzo Financial Services.
“In our mission of serving businesses who are core to nation-building, we have attained strong growth with profitability even through these uncertain periods,” Mohapatra said. “We have an unwavering belief in the potential of commerce and financing in the B2B landscape and our vision is to just keep doing more of what we have done so far.”
The company operates out of 14 offices across India and has 620 employees. Its annual sales run rate is almost $1.5 billion. The company plans to add another 100 employees this year and grow its revenue by 3x.
OfBusiness will use the latest capital infusion to expand the number of regions it operates in and grow its existing supply chain—which include heavy machinery, consumer goods and agri-processing—to 11 categories.
The company competes primarily with offline players. Infra.Market, ZetWerk and Moglix are other B2B startups in the raw materials procurement space.
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