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OfBusiness Prepares for a 1 Billion dollar IPO in 2025

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Published Date: 09 Sep 2024Updated Date: 31 Dec 20246 mins readBy MOFSL

Indian B2B e-commerce giant OfBusiness, backed by SoftBank, is gearing up for a major milestone in 2025—its much-anticipated initial public offering (IPO). The company plans to raise up to $1 billion, positioning itself as one of the biggest IPOs in the Indian stock market. Talks are already underway with investment powerhouses like Bank of America, Citi, JP Morgan, and Morgan Stanley to manage the offering. The IPO is expected to hit the market in the second half of 2025.

About OfBusiness: A Leader in B2B E-Commerce

Founded in 2015 by Ashish Mohapatra and Ruchi Kalra, OfBusiness has quickly become a key player in India's B2B e-commerce industry. The platform offers a diverse range of products, including polymer goods, agricultural products (such as pulses), and industrial steel. What sets OfBusiness apart is its deep integration with the needs of businesses, helping them access essential materials while also providing financing solutions through its sister company, Oxyzo.

OfBusiness has already raised over $800 million in funding, valuing the company at approximately $5 billion. Ashish and Ruchi, who met during their time at McKinsey & Co., co-founded the company with a vision to streamline the procurement process for businesses. In 2017, they expanded their vision by launching Oxyzo, a separate financial arm focused on providing working capital to businesses using data-driven technology. Both companies operate independently but are profitable ventures, with OfBusiness leading the charge in the B2B space and Oxyzo addressing the financial needs of small and medium-sized enterprises (SMEs).

IPO Details: Targeting $6-9 Billion Valuation

The upcoming IPO is set to raise between $750 million to $1 billion, with $200 million coming from fresh shares and the rest from existing shareholders selling their stakes to new investors. The proceeds will be used to repay debt and fund business expansion, ensuring that OfBusiness continues its aggressive growth trajectory. The company is targeting a valuation between $6 billion and $9 billion, making it one of the most valuable tech-driven B2B platforms in the country.

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Key investors in OfBusiness include Tiger Global and SoftBank Group, each holding a 15% stake, along with Alpha Wave Global, which owns 18%. The IPO will be closely watched, especially following the successful public listing of another SoftBank-backed company, Ola Electric, earlier this year.

Financial Performance: Strong Profits & Growing Revenue

OfBusiness has demonstrated impressive financial performance, a key factor in attracting both investors and businesses to its platform. In FY24, the company generated a net profit of $72.6 million on revenue of $2.3 billion. With a clear focus on efficiency, OfBusiness is currently merging some of its subsidiaries to streamline operations ahead of the IPO.

The timing of the IPO couldn’t be better. The Indian stock market has been on a roll making it one of the top-performing markets in Asia. This favourable market environment, combined with OfBusiness's strong financials, sets the stage for a successful public debut.

Building a Strong Foundation in India’s B2B Market

OfBusiness is positioned as a trailblazer in India’s B2B e-commerce sector. By leveraging technology, providing essential products, and offering financing solutions, the company is solving critical pain points for businesses across various industries. As the company looks to expand further with the capital raised from the IPO, it will continue to strengthen its leadership in India’s rapidly growing digital economy.

OfBusiness has already proven itself as a dominant force in the market. The upcoming IPO will not only fuel its expansion plans but also reaffirm its leadership position in the B2B e-commerce space, making it a key player to watch in the Indian stock market.

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Conclusion: OfBusiness Set to Make a Major Impact with its 2025 IPO

As OfBusiness prepares for its $1 billion IPO in 2025, it is poised to make a significant mark on India's stock market. With its strong financials, consistent growth, and market-leading position in the B2B space, the company is well-positioned for a successful public offering. The funds raised from the IPO will enable further expansion, product innovation, and a continued focus on profitability, making OfBusiness a powerful force in India’s digital transformation.

For investors and businesses alike, OfBusiness represents a unique opportunity to participate in the growth of India’s booming B2B e-commerce market. As it moves closer to its public listing, the company’s impact on the Indian economy and the stock market is set to be profound.

 

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