OfBusiness Plans $1 Billion IPO for Late 2025, Valuation Expected to Surge

OfBusiness, the B2B marketplace unicorn, is preparing for a significant initial public offering (IPO) valued between $750 million and $1 billion. The company aims to launch the IPO in the second half of 2025 and is in the process of finalizing investment bankers to manage the public issue.

IPO Details and Investment Bankers

OfBusiness CFO Bhavesh Keswani revealed to Reuters that the startup is negotiating with major investment banks including Bank of America, Citi, JP Morgan, and Morgan Stanley. The IPO will consist of a fresh issue of shares worth $200 million, with the remaining portion being an offer for sale.

“The proceeds from the IPO will be utilized for debt repayment and to support the growth of our existing business,” Keswani stated.

Valuation and Financials

The company is targeting a valuation between $6 billion and $9 billion, a notable increase from its last valuation of $5 billion. OfBusiness had previously raised $325 million from investors such as Alpha Wave Ventures II, Tiger Global, and SoftBank in December 2021.

Founded in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain, OfBusiness specializes in facilitating raw material procurement and credit for SMEs in the manufacturing and infrastructure sectors. It provides access to essential materials including metals, chemicals, polymers, agri-commodities, petrochemicals, and building materials.

To date, the startup has secured approximately $878 million in funding. Financially, OfBusiness reported a 30% increase in net profit, reaching INR 603 crore for FY24, up from INR 463.2 crore in the previous fiscal year. Revenue from operations also saw a substantial rise of over 25%, climbing to INR 19,296.3 crore from INR 15,342.6 crore in FY23.

Future Developments

The upcoming IPO is part of a broader trend in the Indian market, where several startups are preparing to go public amid a surge in IPO activity. OfBusiness’ fintech arm, Oxyzo Financial Services, which offers cash flow-based financing for SMEs, is also considering a public listing.

Meanwhile, competitors such as Infra.Market are also gearing up for their own public offers, with Infra.Market planning a $700 million IPO and ArisInfra having already filed its draft red herring prospectus for a $72 million IPO.