News: Oxyzo Financial Services raises $200 mn, turns unicorn

Funding & Investment

Oxyzo Financial Services raises $200 mn, turns unicorn

Alpha Wave led the funding round in the lending arm of the Softbank-backed OfBusiness, and was joined by Tiger Global, Norwest Venture Partners, Matrix Partners, and Creation Investments.
Oxyzo Financial Services raises $200 mn, turns unicorn

Oxyzo Financial Services, the lending arm of SoftBank-backed B2B commerce firm OfBusiness, has raised $200 million in its first round of external capital, the highest series-A fundraising ever for an Indian startup.

Alpha Wave led the unicorn round, which was joined by Tiger Global, Norwest Venture Partners, Matrix Partners, and Creation Investments.

Oxyzo began as the lending platform of OfBusiness, offering cash flow and matching working capital finance for SMEs in manufacturing and subcontracting to purchase new materials.

It expanded its product line and expanded its customer base to include SMEs, mid-sized corporations, and new-economy corporations. It manages $350 million in assets and claims to have been profitable since its beginning.

"Both OfBusiness and Oxyzo have a strong borrowing profile enjoying confidence across 50+ financial institutions,"  Asish Mohapatra, OfBusiness Group CEO, said.

His wife and co-founder Ruchi Kalra, who is the CEO of 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."

Kalra would be one of the few Indian women to co-found a profitable fintech unicorn as a result of this. She is an IIT-Delhi and Indian School of Business graduate who has been managing the financing division at OfBusiness.  Before co-founding OfBusiness with spouse Asish Mohapatra and colleagues, she was a partner at management consulting firm McKinsey.

The funds will be used to organically and inorganically expand Oxyzo's broader digital financial services, including scaling the supply chain marketplace, creating unique fixed-income products for SMEs, and scaling additional fee-based business lines, such as debt capital markets and securities.

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Topics: Funding & Investment, Technology

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