Ofbusiness’ lending arm Oxyzo enters the unicorn club after a US$200 million fundraise

Oxyzo Financial Solutions Pvt Ltd, OfBusiness’ finance arm, has become a unicorn after receiving $200 million in a Series A funding round. The financing round was led by Alpha Wave with Tiger Global Management, Norwest Venture Partners, Matrix Partners, and Creation Investments joining as co-investors.

Oxyzo began as the finance platform of the OfBusiness Group, intending to provide cash flow matching working capital financing for SMEs (small-medium businesses) in conventional industries like manufacturing and subcontracting. It eventually branched out outside OfBusiness’s B2B (business-to-business) raw material platform, lending to various industries.

According to the company, the funds will help scale Oxyzo’s broader digital financial services both organically and inorganically. They will do it by scaling the supply chain marketplace, launching fixed income products for small businesses, and scaling other fees, like debt capital markets and securities.

Oxyzo claims to have $350 million in assets under management (AUM). The firm also claimed to have grown by 100% year over year and kept its GNPA (gross non-performing asset ratio) at 1.2 percent throughout the Covid era. According to the corporation, it has a best-in-class operating expense of 2.5 percent.

In the previous six months, according to the company, Oxyzo’s newly launched fixed income and securities business line has generated a total market volume of more than $1.6 billion. Oxyzo claims it has been successful from its beginning and presently has a pre-tax return on assets of over 5.5 percent.

Future Plans

 “Oxyzo has inherited the highest standards of corporate governance and compliance from its parent, OfBusiness, which has been essential in both organizations becoming the first to be rated A+ (by ICRA) in their respective categories,” Chief Executive Officer of the OfBusiness Group, Ashish Mohapatra, stated.

Oxyzo said that it aspires to consistently innovate in the B2B financial services industry by leveraging technology to provide end-to-end capabilities in origination, deployment, tailored structuring, and distribution.

“We see a notable shift in the growing demands and servicing strategy in the B2B market with the rise of the digital economy,” stated Ruchi Kalra, Co-founder and Chief Executive Officer of Oxyzo.