OfBusiness – Leading Procurement Platform Set for IPO and Funding Growth

OfBusiness, a prominent platform for procuring industrial goods and services, is preparing for its initial public offering (IPO) in the latter half of 2025. The company has successfully secured Rs 100 crore (approximately $11.7 million), with the investment spearheaded by Cornerstone Ventures.

Previously, OfBusiness raised over $650 million through multiple funding rounds, including a significant $325 million investment round led by Alpha Wave, Tiger Global, and SoftBank, achieving a valuation of $5 billion.

This latest investment from Cornerstone Ventures comes from its second fund, which totals $200 million. This fund began its journey last year, achieving its first financial close at $40 million in January and aiming for a second close by the year’s end.

According to OfBusiness, the funds raised will be dedicated to enhancing digital adoption and improving access to financing for small and medium enterprises (SMEs).

OfBusiness Co-Founders and Operations

Founded in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain, OfBusiness specializes in providing raw material procurement and financing solutions targeted towards SMEs engaged in the manufacturing and infrastructure sectors through its innovative platform.

Investor Landscape and Stakeholders

As per various sources from startup data intelligence platforms, Alpha Wave stands as the largest external investor with a 19.16% stake in OfBusiness, followed closely by Creation Investment and Matrix. Other significant investment participants include SoftBank, Norwest, and Tiger Global.

Financial Performance and Competition

For the fiscal year that concluded in March 2024, OfBusiness showcased remarkable growth, recording a 25.8% year-on-year increase in revenue, escalating to Rs 19,296 crore from Rs 15,343 crore in FY23. Additionally, the company’s profits experienced a 30.2% year-on-year growth, reaching Rs 603 crore during the same timeframe.

In the competitive landscape, OfBusiness faces rivalry from companies such as Zetwerk, Infra.Market, and Moglix. Notably, Infra.Market and Moglix reported gross revenues of Rs 14,530 crore and Rs 4,964 crore, respectively, during the last fiscal year (FY24).