Ofbusiness Valuation: India's Fintech Firm Eyes $4.5 Billion+

OfBusiness Pursues New Funding Round

OfBusiness, a rapidly growing e-commerce company specializing in industrial supplies and financial services for small businesses, is reportedly negotiating a new investment round.

Sources indicate the company is aiming for a valuation exceeding $4.5 billion. This information comes from three individuals with direct knowledge of the ongoing discussions.

Rapid Valuation Growth

Should this funding round be finalized, it will mark the fourth financing secured by OfBusiness within the current year.

The company has experienced substantial valuation increases, jumping from approximately $800 million in April to $3 billion just a month later.

Potential Lead Investor

Falcon Edge Capital is currently being considered as the lead or co-lead investor for this new round, according to one source.

OfBusiness’s existing investor base already includes prominent firms such as SoftBank Vision Fund 2, Tiger Global, and Alpha Wave Incubation, which is managed by Falcon Edge.

Company Response

Asish Mohapatra, the co-founder and CEO of OfBusiness, has not yet responded to requests for comment regarding these negotiations.

Business Model Overview

OfBusiness functions as a central hub for raw material aggregation and provides procurement financing solutions.

The company collaborates with financial institutions to extend credit lines to small and medium-sized enterprises (SMEs) with annual revenues exceeding $3 million.

Data-Driven Lending

The platform leverages data collected from user activity to assess and approve loans.

This data-driven approach supports lending to businesses utilizing OfBusiness for raw material sourcing and tender processes.

Evolution of the Business

Initially, OfBusiness identified a critical need among its customers: access to working capital.

Following this realization, Asish Mohapatra focused on recruiting experienced leaders to develop a robust financial services offering.

He openly admitted in a recent investor podcast that he initially lacked expertise in underwriting and finance business development.

Financial Performance

The finance division has become a significant and profitable component of OfBusiness.

This success has attracted considerable interest from high-profile investors in recent quarters.

Currently, the company boasts an annual revenue run rate exceeding $1 billion, with a loan portfolio reaching $220 million as of July.