Oxyzo Financial Services, the lender of Industrial Goods and Services, the procurement arm of Of Business, has raked in $200 million in an A Series round led by Alpha Wave and co-led by Tiger Global, Norwest Venture Partners, Matrix Partners and Creation Investments.
This is the first outside round of Oxyzo, which was founded as an OfBusiness Group’s finance platform but was later transformed into an independent entity within the group. The company claims it has raised funds for $1 billion, which makes this the 2nd unicorn in the group. In July of last year, OfBusiness became a unicorn after the $160 million round facilitated by SoftBank and is currently valued at five billion.
It is worth noting that OfBusiness SoftBank, the backer of OfBusiness SoftBank, is not a participant in Oxyzo’s funding round.
This round is also an exciting moment in the history of the company, as Oxyzo is the first company to achieve the status of a unicorn at the Series A level. It’s also the largest Series A round ever raised by an Indian startup.
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The money is used to increase Oxyzo’s digital financial offerings as well as to expand its supply chain market, as well as launching new fixed-income products that are innovative specifically for the SME market, and increasing other fee-income business lines, including debt securities and capital markets, stated the company in a statement.
Over the past few years, Oxyzo has expanded to value chains beyond OfBusiness, its B2B raw materials platform, offering a diverse product line and a larger client base that includes SMEs and mid-sized corporations and the new economy.
Oxyzo claims that it has increased its revenue to $350 million, with a 100 percent growth in Y-o -Y while keeping the GNPA at 1.2 percent. Additionally, the company’s recently established Fixed Income and Securities business has racked up an aggregate market value that is greater than $1.6 million in the past six months. Oxyzo has been profitable from its start and is currently at 5.5 percent+ ROA pre-tax.
Although the company didn’t provide further information, it earned 12.5 percent of its revenues from financial services in FY21. According to the Fintrackr study, the profits were up 33.7 percent to 219.3 crores in FY21 compared to the FY20 figure of Rs 164 crore. In total, OfBusiness’ annual profits rose by 72.4 percent to 55.7 crores in FY21, up from 32.3 million in FY20.
According to OfBusiness founder and co-founder Ruchi Kalra company has a 70-80 percent stake in the company.
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In October 2021, the online credit platform CredAvenue snatched up 90 million dollars in a capital round. In the past, roll-up e-commerce firm GlobalBees had taken home $150 million from its Series A round that included $75 million in debt. The most valuable Series A startups that have been funded are Ola Electric, Mensa and Fampay.
OfBusiness will be the next business that has seen the creation of a unicorn within its group. In the past, Ola Electric from Ola, Paytm Mall from Paytm and PhonePe of Flipkart, Glance from InMobi and GlobalBeesfrom FirstCry have all achieved this feat. Paytm Mall was unable to claim unicorn status and is now valued at less than $1 billion.
