OfBusiness IPO Soon? $1 Billion Offering Set for 2025 With Top Bankers

In a bold move signaling its intent to take the leap into the public market, SoftBank-backed B2B marketplace OfBusiness has announced its plans to raise up to $1 billion through an Initial Public Offering (IPO). The Delhi NCR-based company, founded in 2016, has appointed five major investment banks to handle the upcoming IPO, which is slated for 2025. The deal is set to mark another high-profile listing in India’s booming startup ecosystem, which has already seen a surge in IPOs this year.

TICE gets you inside details of this expected IPO.

OfBusiness IPO

OfBusiness, which operates as a B2B marketplace, has roped in a powerhouse lineup of investment banks to manage the offering. These include Axis Capital, Morgan Stanley, JPMorgan, Citigroup, and Bank of America. The involvement of such prestigious institutions highlights the growing investor confidence in OfBusiness as it seeks to expand its footprint in the public markets.

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Chief Financial Officer Bhavesh Keswani shared insights on the company’s IPO journey, stating that while market timing will not dictate their strategy, profitability is key to their growth. Co-founder Nitin Jain further emphasized that the company is not chasing market fluctuations, and that their profitability track record positions them for success, irrespective of market timing.

"We are profitable and focused on the long-term strategy," Jain said, highlighting their readiness to go public.

OfBusiness IPO Structure: What’s in the Deal?

The IPO will consist of two components: a fresh issue worth $200 million, alongside an offer-for-sale (OFS) component, where existing shareholders will sell part of their holdings. Although the company has not disclosed an exact valuation target, sources close to the deal suggest that OfBusiness is eyeing a valuation range between $6 billion and $9 billion.

This development comes amid an uptick in Indian IPOs this year, with 290 companies raising over $15.5 billion in capital as of mid-November—marking more than a twofold increase compared to the previous year, according to data from London Stock Exchange Group (LSEG).

The Road Ahead: OfBusiness IPO Timeline

OfBusiness is targeting approval from the Securities and Exchange Board of India (SEBI) between March and June of next year. The company plans to go public by late 2025, allowing it ample time to complete the necessary regulatory processes, including integrating its business operations ahead of the listing.

The IPO announcement follows a series of internal milestones, including an Employee Stock Ownership Plan (ESOP) liquidation program worth INR 100 crore, benefiting over 100 employees. In addition, early investor Zodius Capital marked its exit through a $100-120 million secondary share sale to high-net-worth individuals (HNIs) and family offices, indicating the growing maturity of the company.

Founded by Nitin Jain, Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, and Bhuvan Gupta in 2016, OfBusiness provides essential raw material procurement and financing solutions to SMEs (small and medium enterprises) in the manufacturing and infrastructure sectors. The platform simplifies the procurement of materials such as metals, chemicals, polymers, and agri commodities, positioning itself as a one-stop solution for the fragmented B2B supply chain.

The company’s rapid growth and financial stability are evident in its recent performance. For FY24, OfBusiness reported a 25% increase in operating revenue, reaching INR 19,296.3 crore, up from INR 15,422.4 crore in FY23. Furthermore, its net profit saw a 30% surge, climbing to INR 603 crore, compared to INR 463.2 crore the previous year. These impressive numbers underscore the company’s robust business model and its capability to scale.

Key Stakeholders of OfBusiness

The company's backers include high-profile investors like SoftBank Group and Tiger Global, who collectively own approximately 15% of the company. Additionally, Alpha Wave Global holds an 18% stake. To date, OfBusiness has successfully raised $878 million in funding across multiple rounds, solidifying its position as one of India’s leading B2B platforms.

These investors have played a pivotal role in helping OfBusiness scale, as the company continues to expand its operations across India and beyond.

Fintech Arm Oxyzo: Potential IPO on the Horizon

In addition to its core business, OfBusiness has also made significant strides in fintech through its arm, Oxyzo Financial Services. The fintech arm provides working capital loans and supply chain financing to SMEs, further strengthening OfBusiness’ role in the Indian business ecosystem. Sources have indicated that Oxyzo is also considering an IPO, though no official timeline has been shared.

The Surge of IPOs in India

The timing of OfBusiness' IPO comes amid a dynamic wave of IPOs in India. In 2024, the Indian market has already seen a record number of listings, with companies raising significant amounts of capital. This surge can be attributed to several factors, including strong domestic growth, investor appetite for tech startups, and favorable market conditions.

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Companies across sectors—from fintech to e-commerce and hardware—are capitalizing on this momentum to fuel their growth and expansion plans. As a part of this trend, OfBusiness aims to leverage its IPO as a strategic tool to further its ambitions, enabling expansion, acquisition, and innovation.

What’s Next for OfBusiness?

As OfBusiness prepares for its IPO, the focus will remain on its core business, continued profitability, and internal streamlining to ensure that its operations are ready for the rigors of the public market. However, the company’s growth trajectory suggests that it will continue to play a pivotal role in India's B2B ecosystem, offering a blueprint for other startups aspiring to go public.

OfBusiness' journey from a promising startup to a billion-dollar unicorn has been marked by strategic growth, strong financial performance, and an increasing market presence. With a carefully planned IPO ahead, the company is poised to continue its ascent in the Indian business landscape.

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