OfBusiness: The Quiet B2B Giant Powering India’s SME Supply Chain

If you’ve ever wondered how thousands of Indian SMEs manage raw material sourcing and working capital without running pillar to post, chances are OfBusiness is working behind the scenes.

Founded in 2015, Gurugram-based OfBusiness (OFB Tech Pvt. Ltd.) sits at a rare intersection—commerce + credit. And as it gears up for a potential IPO, its numbers tell a story worth unpacking.

A) What exactly does OfBusiness do?

At its core, OfBusiness is a tech-enabled B2B commerce platform for SMEs in infrastructure, manufacturing, construction, and agriculture. But that’s just the surface.

It operates through three tightly linked verticals:

i) Raw Material Procurement

OfBusiness bulk-buys essentials like:

• Steel (ferrous & non-ferrous)

• Chemicals and petroleum products

• Cement

• Agri and food products

It then supplies these directly to SMEs—cutting out inefficiencies, reducing costs, and solving logistics headaches.

ii) Embedded Financing (via Oxyzo)

Here’s the secret sauce.

Through its NBFC arm Oxyzo, OfBusiness offers collateral-free working capital loans, tightly linked to purchase transactions on the platform.

• Underwriting is data-driven

• Risk is assessed using transaction history and cash flows

• Credit is fast, contextual, and scalable

Oxyzo became a standalone unicorn in 2022, validating this model.

iii) SaaS & Tendering (BidAssist)

BidAssist helps SMEs:

• Discover government and private tenders

• Manage compliance and documentation

• Improve win rates using analytics

This adds a high-margin SaaS layer to the business.

B) How does it make money?

OfBusiness doesn’t rely on a single revenue engine:

• Commerce margins on bulk-sourced materials

• Interest income from working capital loans

• SaaS subscriptions via BidAssist

• Commissions from OEMs and large manufacturers

This diversification is crucial—and it shows up clearly in the financials.

C) Revenue mix: What’s driving growth?

FY25 Total Revenue: ₹22,241 crore (up 15% YoY vs FY24)

Key contributors:

• Ferrous materials: ₹8,556 crore (vs ₹7,354 crore in FY24)

• Non-ferrous: ₹4,543 crore (vs ₹3,707 crore)

• Chemicals & petroleum: ₹2,592 crore (vs ₹1,561 crore)

• Agriculture & food: ₹2,495 crore (vs ₹3,427 crore)

• Interest income: ₹1,117 crore (vs ₹816 crore)

While some categories like apparel declined, core industrial segments and financing income continued to scale steadily.

D) Financial performance at a glance

Revenue & profitability

Key takeaway: Margins expanded meaningfully post-FY23 and then stabilized—suggesting operational maturity rather than hyper-growth at any cost.

Balance sheet snapshot

Borrowings have risen alongside scale—typical for a commerce-plus-credit model—but equity growth has kept pace, maintaining balance sheet strength.

Cash flow reality check

Operating cash flows are still negative, though improving materially. Net cash turned positive in FY25, and cash in hand rose sharply—signalling improving working capital discipline.

Investors, valuation & IPO buzz

• Backed by SoftBank Vision Fund, Tiger Global, Matrix, Norwest

• Raised $800+ million

• Last valuation: ~$5 billion

• IPO timeline: Tentatively FY26

The listing is expected to unlock value from both the commerce engine and the fintech arm (Oxyzo).

The UnlistedZone take

OfBusiness isn’t flashy. It doesn’t sell to consumers. But it quietly powers India’s industrial backbone.

By solving two of the biggest SME pain points—procurement and credit—on a single platform, it has built strong moats, data advantages, and a scalable profit engine.

Sometimes, the biggest stories aren’t on the front page. They’re buried deep in the supply chain.