[Funding alert] OfBusiness lending unit Oxyzo turns unicorn with record $200M Series A from Tiger Global, Alpha Wave

The funds will expand Oxyzo’s broader digital financial services play organically and inorganically across a strong own balance sheet play, scaling the supply chain marketplace, launching innovative fixed income products for the SME space, and scaling other fee incomes business lines.

Gurugram-based Oxyzo Financial Services, a tech-enabled smart financing solution provider, has announced its $200 million Series A fundraise led by Alpha Wave and co-led by Tiger Global, Norwest Venture Partners, Matrix Partners and Creation Investments. The round values the company at $1 billion.

According to an official statement, the funds will be used to expand Oxyzo’s broader digital financial services play organically and inorganically across a strong own balance sheet play, scaling the supply chain marketplace, launching innovative fixed income products for the SME space, and scaling other fee incomes business lines including debt capital markets and securities.

Oxyzo aims to continuously innovate in the B2B financial services space through end-to-end capabilities across origination, deployment, curated structuring and distribution enabled through technology. 

Ruchi Kalra, Co-founder and CEO, Oxyzo, said,

“With the emergence of the digital economy, we see a marked shift in the emerging needs and servicing approach in the B2B segment. 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. We are very excited about our next phase of growth as we further embed ourselves digitally into the SME, mid-corporate and the new age supply chains.”

Founded in 2016 by Asish Mohapatra and Ruchi Kalra, Oxyzo started as a financing platform of Ofbusiness- a unicorn since July 2021 - to provide cash flow matched working capital financing for buying raw materials for SMEs in the traditional sectors of the economy such as manufacturing and subcontracting. 

In the next phase of its growth, the company expanded to value chains beyond OfBusiness’ B2B raw material platform with diversified product suite and a broader customer base to include SMEs, mid-corporates, as well as the new age economy.

With this, the firm has now leveraged its strong supply chain data warehouse, based its cumulative disbursements of $2 billion+ across 30,000+ nodes to build a digital supply chain and embedded finance marketplace that aims to solve for the under-penetrated formal credit in the B2B economy.

Navroz D Udwadia, Co-founder and Partner at Alpha Wave Global, said,

“We’ve been fortunate to be their partners for a while, and have seen an impressive scale-up with best-in-class risk management despite strong headwinds from Covid. We look forward to helping build a high-single digit RoA business that compounds over a long runway.”

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The fintech platform claims that it has grown to an AuM of $350 million with a 100 percent Y-o-Y growth while maintaining its GNPA (gross non performing assets) at 1.2 percent even through the COVID-19 pandemic period.

Further, Oxyzo’s recently launched fixed income and securities business line has achieved cumulative market volume of $1.6 billion+ in the last six months. It also claims to have been profitable since its inception.

Asish Mohapatra, CEO, OfBusiness Group, said, “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.”

Griffin Schroeder, Partner, Tiger Global, stated, "We're excited to support Oxyzo as it steps out of the Group's shadows to disrupt the digital financial services space. As the B2B landscape in India evolves, OfBusiness and Oxyzo will be twin pillars to open up opportunities and lower costs for millions of SME's across India."

Niren Shah, Managing Director and Head, Norwest Venture Partners India, stated, “We have been delighted with our early investment in Ofbusiness and feel privileged to get an opportunity to partner with them once again, this time co-leading a $200m round to fund Oxyzo, the SME Fintech business. We are impressed with how the Oxyzo team has built a high growth business with robust corporate governance and are even more excited with their vision to build this into India’s most profitable, tech-driven, B2B SME fintech player. We are proud to congratulate Ruchi on becoming the first female founder in India of a profitable, fintech unicorn!”