Oxyzo Financial Services, the lending arm of B2B unicorn OfBusiness, has announced its entry into the asset management sector with its inaugural credit fund. The new fund, named Oxyzo Credit Fund I (OCF-I), will focus on providing secured growth capital to mid-sized, investment-grade companies. This strategic diversification marks a significant step for the firm as it expands beyond its core lending operations.
Strategic Expansion into Asset Management
The new venture is managed by Oxyzo Investment Manager Private Limited, a wholly owned subsidiary established to oversee the fund. This entity commenced operations in July 2025 and secured regulatory approval for its first fund in November 2025. Its primary focus will be on originating and co-investing in secured debt and performing credit opportunities.
Registered with SEBI as a Category II Alternative Investment Fund, OCF-I has successfully completed its first close. The fund has attracted capital from a diverse group of high-net-worth individuals, family offices, and institutional investors. Notably, the Tourism Finance Corporation of India has approved an investment of up to 5% of the fund's total corpus.
Fund Objectives and Future Outlook
The fund's core strategy is to generate steady, risk-adjusted returns for its investors while ensuring capital protection through secured investments. OCF-I will prioritize providing growth capital to established companies and will also place an emphasis on investing in ESG-compliant businesses. This approach aligns with growing market demands for responsible and stable investment vehicles.
Looking ahead, Oxyzo Investment Manager has set ambitious goals for its new asset management division. The firm plans to scale its overall assets under management to approximately $327 million over the next four to five years. This long-term vision involves launching multiple strategies to build a robust and diversified fund management business.
Financial Performance and Corporate Context
This expansion is supported by Oxyzo's robust financial health and consistent growth in its primary lending business. For fiscal year 2025, the company reported a 16.7% increase in net profit to $37 million and a 33.7% rise in operating revenue. These strong financials provide a stable foundation for venturing into new financial services segments.
The launch complements the activities of its parent company, OfBusiness, which is preparing for an initial public offering. Oxyzo, which achieved unicorn status in 2022, plays a crucial role in providing credit facilities to customers on the OfBusiness platform. This synergy strengthens the overall value proposition of the entire corporate group as it moves towards a public listing.
The launch of Oxyzo Credit Fund I represents a pivotal moment for Oxyzo Financial Services, marking its evolution from a pure-play lender to a diversified financial institution. By leveraging its deep expertise in corporate credit, the company is well-positioned to create value for a new class of investors. This strategic move not only opens up new revenue streams but also reinforces its standing in India's competitive financial landscape.