Business to business (B2B) ecommerce platform OfBusiness has raised $194 million in its Series F funding round led by Tiger Global which picked up a 5% stake, said the co-founder and chief executive of the recently born unicorn.
Tiger Global has invested $150 million and existing investors SoftBank Vision Fund II and Alpha Wave put in around $23 million and $21 million, respectively, said Asish Mohapatra.
Another $15 million will come from another investor soon to be finalised by the company. The purpose of the fundraise is to buy more companies in supply chain commerce and financial services, added Mohapatra.
He confirmed that the valuation of the Gurugram-headquartered OFB Tech, which owns and operates OfBusiness, has risen from $1.5 billion to $3 billion after the round.
“The time of B2B consolidation has come driven by technology and ability to provide working capital. All four intermediaries -- the distributor, the financier, the contract manufacturer and the buyer from source -- will get consolidated, beginning with the smaller ones,” Mohapatra said.
Entrackr first reported the fundraise.
Two months ago, OfBusiness entered the unicorn club with a $160 million (about Rs 1,190.5 crore) fundraise from SoftBank to join the likes of Moglix and Infra.Market.
Founded in 2015 by Mohapatra, Ruchi Kalra, Vasant Sridhar and Bhuvan Gupta, OfBusiness helps businesses procure raw materials in several categories including metals, chemicals, polymers, agri-comodities, petrochemicals and building materials.
Based in Bengaluru, the company also operates Oxyzo Financial Services to facilitate cash-flow based financing and tender sourcing SaaS platform Bidassist.
OfBusiness aims to expand offerings to semi-finished goods, private labels and contract manufacturing, apart from adding new geographies and marketing channels.
Besides Tiger Global, SoftBank and Falcon Capital, the company counts Matrix Partners, Zodius Technology Opportunities Fund, Norwest Venture Partners as shareholders.
It has also received funding from angel investors including Ola CEO Bhavish Aggarwal and former CEO of cab-hailing platform’s financial services arm Nitin Gupta, and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal.
In 2017, OfBusiness also raised Rs 25 crore in debt funding from Kotak Mahindra Bank.
For FY21, it recorded Rs 84 crore profit and is expecting to post a profit of Rs 350 crore in the ongoing financial year.