Oxyzo Financial Solutions Pvt Ltd, the financing arm of OfBusiness, has turned unicorn after raising $200 million in a Series A fundraise, the company said in a press release on Wednesday.
The round was led by Alpha Wave and co-led by Tiger Global Management, Norwest Venture Partners, Matrix Partners and Creation Investments.
Oxyzo started as OfBusiness Group’s financing platform to provide cash flow matched working capital financing for buying raw materials for SMEs (small medium enterprises) in the traditional sectors of the economy such as manufacturing and sub-contracting. It later expanded to segments beyond OfBusiness’ B2B (business-to-business) raw material platform by lending to SMEs, mid-corporates, as well as the new age economy.
The funds will be used to expand Oxyzo’s broader digital financial services play organically and inorganically by scaling the supply chain marketplace, launching fixed income products for the SME space, and scaling other fee incomes business lines including debt capital markets and securities, the company said.
Oxyzo said it has assets under management (AUM) of $350 million. The company also claimed to have clocked a 100% on year growth and said it maintained GNPA (gross non-performing asset ratio) at 1.2% even through the Covid period. The company said it has operating expenditure of 2.5%, which it claimed to be best-in-class.
Oxyzo said its recently launched fixed income and securities business line has achieved cumulative market volume of more than $1.6 billion in the last 6 months. Oxyzo claimed it has been profitable since its inception and the company is currently generating an over 5.5% pre-tax return on assets.
“Oxyzo, has inherited highest standards of corporate governance and compliances from its parent OfBusiness, which has been instrumental in both entities becoming earliest to be rated A+ (by ICRA), in their respective categories,” said Asish Mohapatra, Chief Executive Officer, OfBusiness Group.
“Both OfBusiness and Oxyzo have a strong borrowing profile enjoying confidence across 50+ financial institutions. The Company believes that the growth of fresh talent coupled with the right risk experience and architecture has been at the heart of innovation and execution,” Mohapatra added.
Oxyzo said it aims to continuously innovate in B2B financial services space through end-to-end capabilities across origination, deployment, curated structuring and distribution enabled through technology.
“With emergence of the digital economy, we see a marked shift in the emerging needs and servicing approach in the B2B segment,” said Ruchi Kalra, Co-founder and Chief Executive Officer, Oxyzo.
“We want to be at the forefront of this as a diversified financial services company, differentiated through its innovative financial products and digital platforms on the back of strong credit and origination capabilities,” Karla added.