Unicorn Startup Oxyzo Records 185% Surge in Profit After Tax in FY 23

Oxyzo, the lending arm of OfBusiness, has announced a remarkable 2.8X or nearly 185% increase in Profit After Tax (PAT) for the fiscal year 2023, reaching Rs 197 crore compared to Rs 69 crore reported in FY22. This significant surge in profit can be attributed to a rise in the company's total income, which rose by approximately 80% to Rs 562 crore during FY23, compared to Rs 313 crore in FY22. The consolidated statements filed with the Registrar of Companies (RoC) confirm these impressive financial results.

Rapid Growth: Loan Book and Total Assets

Oxyzo's loan book has soared to Rs 4,800 crore, reflecting the company's strong origination capabilities. With a Gross Non-Performing Assets (GNPA) of less than 1%, Oxyzo has demonstrated sound risk management capabilities. 

Ruchi Kalra, CEO of Oxyzo Financial Services, expressed confidence in the company's future performance, stating, "We expect to cross Rs 8,200 crore of Assets Under Management in FY24."

Managing Expenses and Financial Performance

While Oxyzo experienced substantial growth in its total income, the firm's expenses also witnessed an increase. Total expenses rose by 41% to Rs 309 crore in FY23, compared to Rs 219 crore in FY22. Despite the rise in expenses, the company's strong financial performance showcases its ability to manage costs effectively while achieving impressive growth.

How Oxyzo Expanded Its Customer Base?

Established in 2016 by Asish Mohapatra, Bhuvan Gupta, Ruchi Kalra, and Vasant Sridhar, Oxyzo initially served as the lending platform of OfBusiness, providing cash flow and matched working capital financing for SMEs in sectors such as manufacturing and sub-contracting. Over time, Oxyzo diversified its product suite and expanded its customer base to include SMEs, mid-corporates, and new-economy companies.

Future Plans and Partnerships

Oxyzo aims to further scale its operations through channel and co-lending partnerships with other financial institutions. The company's statement highlighted its commitment to investing in and expanding its debt capital markets and supply chain platforms for enterprise clients. These strategic initiatives are expected to drive future growth and enhance Oxyzo's position in the market.

Unicorn Status and Funding

In 2022, Oxyzo achieved Unicorn status following its successful Series A fundraising round, raising USD 200 million from prominent investors such as Alpha Wave, Tiger Global, Norwest Venture Partners, Matrix Partners, and Creation Investments. This injection of funds has further strengthened Oxyzo's financial position and supported its growth ambitions.

Strong Lender Relationships and Financial Health

Presently, Oxyzo boasts 40 lenders, with 70% of its borrowing sourced from large public sector and private sector banks. The company's statement confirmed that Oxyzo concluded FY23 with a net worth of Rs 2,300 crore and a Gross NPA of 0.9%. These figures indicate the company's robust financial health and its ability to manage risk effectively.

With its impressive financial performance and robust growth trajectory, Oxyzo has emerged as a significant player in the lending industry. The company's ability to adapt its product offerings and expand its customer base has contributed to its success. As Oxyzo continues to forge strategic partnerships, invest in innovative platforms, and strengthen its market presence, it is well-positioned to achieve sustained growth and deliver value to its stakeholders in the com.