B2B commerce marketplace OfBusiness’ financial arm Oxyzo has raised $200 million in one of the largest Series A rounds, the company’s first institutional funding, making it the 12th startup to enter the unicorn club in 2022 and 98th unicorn of India.
The new financing was co-led by Alpha Wave Global and Tiger Global with participation from Norwest Venture Partners, Matrix Partners and Creation Investments.
Oxyzo plans to use the funds to expand its digital financial services, 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 claims to have $350 million assets under management, growing 100% on a year-on-year basis. The company is currently serving 2,500+ SMEs across India, disbursing loans worth INR 4,000 cr per annum.
Oxyzo is a lending platform that provides cash flow and matched working capital financing for buying new materials for SMEs in the manufacturing and contracting sectors. Some of its features include the facility to pay interest for the period of the usage of credit lines, low documentation, interest rates as low as 18% per annum and raw material priority from OfBusiness.
Oxyzo Chief Executive Officer Ruchi Kalra said, “We have operated Oxyzo as a separate unit as part of the OfBusiness group with its own team and now the business has reached a point where it could raise capital on its own. For example, 70% of lending from Oxyzo is outside the OfBusiness suppliers. “We will also use the funding for inorganic expansion through acquisitions. We will scale the supply chain marketplace, launch innovative fixed-income products for the SME space, and scale other fee incomes business lines including debt capital markets and securities.”
She further said that new funds would also be used to maintain the capital adequacy ratio as per regulations, as the business would further be scaled.
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