OfBusiness Sets The IPO Ball Rolling, Onboards Five Banks

SUMMARY

OfBusiness has appointed Axis Capital, Morgan Stanley, JPMorgan, Citigroup and Financial institution of America for its deliberate IPO

The B2B market goals to lift as much as $1 Bn by the IPO, with $200 Mn as contemporary difficulty

The corporate reported INR 603 Cr revenue in FY24 on income of INR 19,296.3 Cr

SoftBank-backed B2B market OfBusiness has reportedly roped in 5 banks for its as much as $1 Bn preliminary public providing (IPO) focused for subsequent yr.

The corporate has appointed 5 funding banks, together with Axis Capital, Morgan Stanley, JPMorgan, Citigroup and Financial institution of America for the IPO, Reuters reported, citing chief monetary officer Bhavesh Keswani.

“We’re very clear we aren’t going to time the market, we’re worthwhile,” cofounder Nitin Jain added. 

He added that the method of merging and integrating inside companies forward of the IPO is ongoing.

The report additional stated that OfBusines goals to hunt approval from India’s market regulator between March and June, focusing on a late 2025 itemizing. 

The event comes amid a surge in Indian IPOs, with 290 firms elevating greater than $15.5 Bn as of mid-November this yr, greater than double in comparison with final yr, knowledge from LSEG confirmed.

The IPO will comprise a contemporary difficulty value $200 Mn whereas the remaining quantity can be by an offer-for-sale part. Sources stated the corporate is eyeing a valuation between $6 Bn and $9 Bn, although executives declined to touch upon the valuation targets.

Just lately OfBusiness undertook an ESOP liquidation programme value INR 100 Cr this yr, benefiting over 100 staff. Moreover, early investor Zodius Capital marked its full exit by a $100-120 Mn secondary share sale to HNIs and household workplaces.

Based in 2016 by Jain, Asish Mohapatra, Ruchi Kalra, Vasant Sridhar and Bhuvan Gupta, OfBusiness supplies uncooked materials procurement and financing options to SMEs in manufacturing and infrastructure sectors. 

The platform facilitates procurement of supplies together with metals, chemical compounds, polymers, and agri commodities.

The Delhi NCR-based unicorn has demonstrated sturdy monetary efficiency, with consolidated working income growing 25% to INR 19,296.3 Cr in FY24, whereas internet revenue rose 30% to INR 603 Cr in comparison with INR 463.2 Cr in FY23.

Japanese tech investor SoftBank Group and US-based funding agency Tiger International collectively maintain roughly 15% stake in OfBusiness, whereas Alpha Wave International maintains an 18% stake. The corporate has raised about $878 Mn in funding so far.

The startup’s fintech arm Oxyzo Monetary Providers can be reportedly planning a separate public itemizing, although no timeline has been specified.