OfBusiness's SME commerce-plus-credit bet: FY26 PAT ₹724 crore, IPO-bound

A B2B platform that procures and delivers raw materials - metals, chemicals, polymers, agri commodities, petrochemicals and building materials - for India's manufacturing and infrastructure SMEs, financing those purchases through its NBFC Oxyzo Financial Services.

That SMEs buy raw materials best when commerce and credit are one product: bulk procurement plus 15-18% financing, undercutting informal 24-48% loans.

Founded in 2016 by Nitin Jain (IIT-Delhi engineer who ran the structured-credit desk at Royal Bank of Scotland until 2015), McKinsey partner Ruchi Kalra, Matrix Partners VC Asish Mohapatra, Vasant Sridhar and Bhuvan Gupta, OfBusiness started from a blank sheet with a deliberate rule: no Amazon/Flipkart-style B2C play. Through ITC executive Sanjiv Rangrass it reached builders in Guntur, and after early detours into third-party logistics, consumer construction and furniture, the founders narrowed to procuring raw materials for SMEs and financing those purchases.

The model compounded through a ~$878M total raise: SoftBank's ~$160M round in mid-2021 made OfBusiness a unicorn, and in December 2021 Alpha Wave, Tiger Global and SoftBank invested $325M at a $5B valuation. FY24 revenue was ₹19,296.3 crore with ₹603 crore net profit. In December 2024 the company converted to public company OFB Tech Ltd, finalised bankers including Axis, Morgan Stanley, JPMorgan, Citigroup and Bank of America, and planned a $750M-$1B IPO with about $200M of fresh capital; its NBFC arm Oxyzo (over 70% owned) was also preparing to list.

Ahead of that IPO, FY26 results showed deliberate profit-first surgery: consolidated revenue fell 7% to ₹20,645 crore after discontinuing low-return lines, while PAT rose 21% to ₹724 crore. Commerce EBITDA was up 39% to ₹769 crore at a 4% margin, the commerce business turned free-cash-flow-to-firm positive at ₹390 crore, and Oxyzo ended FY26 with ₹11,800 crore of AUM (up 28%), 3.8% return on assets and 0.75% gross NPAs.

It attached credit to a real transaction: Oxyzo lent against order flow and raw-material purchases, giving it repayment visibility that banks without that data could not match.

It attacked a concrete SME pain - banks meeting only ~30% of working-capital needs - and undercut informal lenders charging 24-48% with 15-18% lines.

Discipline over fashion: the founders refused to chase valuation, narrowed from scattered experiments to one wedge, and kept profitability a core metric from before the pandemic.

Ahead of the IPO it was willing to shrink: revenue fell 7% in FY26 by design as low-return lines were cut, while PAT, EBITDA margin and cash flow all improved.

Do not copy B2C playbooks into B2B: bundling procurement with cheaper credit won OfBusiness its SMEs, and going public made it shrink revenue on purpose to show profit and cash flow.

As of July 29, 2026, OfBusiness (OFB Tech) remains private and IPO-bound, reporting FY26 consolidated revenue of ₹20,645 crore, PAT of ₹724 crore, a free-cash-flow-positive commerce business and ₹11,800 crore of AUM in its lending arm Oxyzo, which carries a 3.8% RoA and 0.75% gross NPA. The company had earlier signalled a $750M-$1B offering with a fresh-issue component of about $200M, and continues to scale headcount (30,000+ employees) and its BidAssist tender-intelligence platform (1.5M+ users) ahead of the listing.