Oxyzo Secures Rs 100 Crore in Debt Funding

Oxyzo, a prominent fintech unicorn, has successfully acquired Rs 100 crore (around $12 million) in debt from AK Capital Finance, a division of the merchant banking firm A.K. Capital Services Ltd. This development comes after its inaugural funding round of $200 million led by Alpha Wave and Tiger Global in March 2022.

The governing boards of Oxyzo have allocated 1,00,000 non-convertible debentures to AK Capital at a price of Rs 10,000 each, as highlighted in its regulatory disclosure obtained from the Registrar of Companies.

The debentures have a maturity period of 24 months and are issued at an interest rate of 9.75% per annum, as per the filing.

Utilisation of Funds

The funds secured will be utilised to strengthen the long-term financial resources of the company and address its working capital needs.

Overview of Oxyzo

Oxyzo serves as the lending division of B2B e-commerce giant OfBusiness, catering to the specific credit requirements of SMEs. It offers a comprehensive suite of loan options, including term loans, working capital solutions, affordable interest rates, and collateral-free credit facilities.

Financial Performance

Based on reports from various data intelligence sources, the Gurugram-based company recorded operational revenue exceeding Rs 900 crore and a net profit of Rs 290 crore for the fiscal year ending 2024.

In the quarter concluding December 2024 (Q3 FY25), Oxyzo’s net profit surged by 11.38% to Rs 82.89 crore, while sales rose by 27.43% to Rs 282.80 crore, up from Rs 221.93 crore in December 2023.

Unicorn Status Achievement

The firm, led by Ruchi Kalra, attained unicorn status by raising $200 million in its first external funding round, becoming the first startup to exceed a $1 billion valuation during its Series A round.

According to various sources, the OFB group, including its promoters, retains a 74.5% stake, with Alpha Wave being the largest external stakeholder at 7.4%, closely followed by Tiger Global.