B2B e-commerce unicorn OfBusiness is reviving its plans for an initial public offering, aiming to raise as much as $800 million. This strategic move is prompted by improving conditions in the Indian equities market, encouraging the company to proceed with its listing ambitions. The SoftBank-backed platform is targeting a valuation between $5 billion and $6 billion for its public market debut.
Strategic IPO Preparations
The company is preparing to file its draft prospectus as early as November, signaling a fast-tracked approach to the listing. To manage the offering, OfBusiness has appointed a consortium of leading investment banks, including Axis Capital, Morgan Stanley, and JPMorgan. The IPO is expected to include a fresh issue of shares worth up to $260 million alongside an offer for sale.
Financial Strength and Performance
This renewed push for a public listing is supported by the company's robust financial health and consistent profitability. For fiscal year FY26, OfBusiness reported a 21% year-over-year increase in its net profit, which reached ₹724 crore. Its revenue remained stable at ₹20,645 crore, demonstrating resilience and a strong market position.
The company's operational efficiency has also seen marked improvement, with its EBITDA growing by 34% to ₹769 crore. This growth contributed to an enhanced EBITDA margin, which expanded to 4% from 2.6% in the previous fiscal year. OfBusiness attributes this positive trend to stronger manufacturing integration and strategic business adjustments.
A Resilient Business Model
Founded in 2015, OfBusiness operates a unique digital platform that serves the needs of small and medium-sized enterprises. The company procures bulk industrial materials such as metals and chemicals, subsequently selling them in smaller quantities to its SME clients. This model addresses critical supply chain gaps for smaller businesses across various industrial sectors.
A key component of its ecosystem is its financing arm, Oxyzo, which provides essential financial services to its customers. Through Oxyzo, OfBusiness offers collateral-free purchase financing and credit lines, enabling SMEs to acquire necessary raw materials. This integrated approach of combining commerce with financing has been central to its success.
Investor Backing and Market Context
The company has attracted nearly $900 million in funding from a roster of high-profile global investors. Backers include SoftBank, Tiger Global, and Norwest Venture Partners, whose participation underscores confidence in its business model. The upcoming IPO will likely provide a partial exit route for these early investors.
OfBusiness's decision aligns with a broader recovery in India's primary market, which has seen a resurgence in listing activity. After a period of volatility, improving investor sentiment has encouraged several technology companies to revisit their public market ambitions. This favorable environment creates a promising window for the company's successful debut.
Previous Plans and Renewed Ambitions
This is not the company's first attempt at a public listing, as it had previously shelved an IPO plan due to weaker market conditions. In a preparatory move, the firm converted into a public entity in December 2024. The current plan appears more measured compared to earlier reports that suggested a larger offering.
In conclusion, OfBusiness is strategically positioning itself to capitalize on its strong financial performance and the recovering IPO market. The planned $800 million offering reflects a well-calibrated ambition to unlock further growth while providing liquidity to its investors. The market will be watching closely as this B2B platform takes its next significant step toward becoming a publicly traded company.
Source: Bloomberg