OFB Tech Pvt. Ltd, which operates fin-tech platform OfBusiness, today announced that it has raised INR 200 crore in Series C financing led by Creation Investments and Falcon Edge. Existing investors Matrix Partners and Zodius Capital also participated in the round, the company mentioned in a statement.
With the current funding round, the company has raised a total of INR 500 crore in a mix of equity and debt funding to date. OfBusiness had raised Rs 25 crore as debt from Kotak Mahindra Bank in October 2017. Besides, it also raised debt lines from Tata Capital, RBL Bank and Northern Arc amongst other lending partners.
Prior to the company’s last round, it had received Rs 75 crore in a Series B round from Zodius Technology Opportunities Fund along with existing investors. In early 2016, it had raised Rs 34.2 crore in series A round of funding from Matrix Partners and a host of angel investors.
OfBusiness will deploy fresh funds to grow its operations and scale it as a “profitable model”.
Asish Mohapatra, co-founder and CEO, OfBusiness said, “We are great believers in the potential of SME lending in India towards the core sectors of the economy that have high dependence on traders and distributors for working capital.” “With financial services partners as Creation Investments and the right cost of capital through our debt lines, we will continue to bundle innovative lending and procurement solutions to address the growing needs of SMEs in India,” he added.
Founded in 2015 by Mohapatra, Bhuvan Gupta, Ruchi Kalra, Srinath Ramakkrushnan, Nitin Jain, Chandranshu and Biswajit Mishra, OfBusiness offers a single-window platform to provide secured and unsecured credit to SMEs for procuring raw material. It has also developed a proprietary platform, Bidassist, to help SMEs discover new growth opportunities across public and private tenders.
Tyler Day, Director at Creation Investments said, “OfBusiness has built an impressive suite of financing solutions tailormade for the needs of SMEs in the manufacturing and infrastructure sectors, segments largely underserved by banks and traditional NBFCs. The scale and profitability that OfBusiness has achieved in such a short time is both a testament to the company’s innovative products and the untapped potential of the SME sector in India.”
OfBusiness claims to have extended loans to about 2,500 small enterprises working in the infrastructure and manufacturing sectors. According to OfBusiness, their total loan book stands at $36.5 Mn (INR 250 Cr) with a monthly disbursal of $14.6 Mn (INR 100 Cr). Now with the latest infusion of growth capital, it will be interesting to see how the company stands against other key players.