Financial services unicorn Oxyzo Financial Services Pvt Ltd, which counts Alpha Wave, Tiger Global Management, Norwest Venture Partners, Matrix Partners and Creation Investments as its investors, on Tuesday posted a 2.8x jump in its net profit for the fiscal ended March 2023 on the back of a rise in revenue and improvement in its financial health.
Oxyzo, the financing arm of raw material procurement platform OfBusiness, saw its net profit or profit after taxes grow to Rs 197.5 crore in FY23 from Rs 69 crore in the fiscal, as per its audited consolidated financial statement.
Oxyzo began its journey as OfBusiness Group’s financing platform to provide cash flow-matched working capital financing for buying raw materials for SMEs (small and medium enterprises).
The company turned unicorn after raising $200 million in one of the largest ever Series A funding rounds for Indian startups in March last year.
When it began, most of its clients are from traditional sectors such as manufacturing and sub-contracting. But later, the company expanded to segments beyond OfBusiness’ B2B raw material platform by lending to SMEs, mid-level corporates, and new-age companies.
As a result of its efforts, Oxyzo has been able to grow its revenues year-on-year. It saw its income from operations rise nearly 42% to Rs 570 crore in the last financial year from Rs 218 crore in FY22. Its primary sources of revenue, interest income and fee and commission income, contributed Rs 537 crore and Rs 24 crore, respectively, to its topline in FY23.
In terms of expenses, the company spent a total of Rs 309 crore in FY23, with the bulk of the money going towards finance costs at Rs 183 crore. It spent nearly Rs 78 crore on employee benefits, followed by Rs 28 crore as impairment on financial instruments.
Meanwhile, Oxyzo said in a release that its total assets now stand at Rs 5,578 crore in FY23, up from Rs 3,439 crore in the fiscal before. “Over the last few years, Oxyzo has diversified its customer base to include micro, small-medium enterprises, mid-corporates, new economy and financial institutions. Along with the growth in its own sourcing in the core sectors of the economy, the Company intends to build further scale through channel and co-lending partnerships with other FIs (financial institutions),” the company said.
Oxyzo’s holding company, OfBusiness is expected to announce its financial results for FY23 in August.
