OfBusiness prepares for $1 billion IPO in 2025 with global investment banks

Domestic B2B ecommerce platform OfBusiness, backed by SoftBank, has appointed five leading investment banks, including Axis Capital, Morgan Stanley, and JPMorgan, to manage its planned $1 billion initial public offering (IPO) in 2025. The company has reportedly also mandated Citigroup and Bank of America to oversee the process, according to Chief Financial Officer Bhavesh Keswani.

The IPO, scheduled for late next year, is part of OfBusiness’ strategy to strengthen its presence in the rapidly growing Indian market. The company intends to seek regulatory approval between March and June 2025. Co-founder Nitin Jain emphasized that the company is well-prepared, focusing on profitability and internal consolidation rather than timing the market. “We are profitable and remain unconcerned by the recent market corrections. Our focus is on integrating our businesses ahead of the IPO,” Jain stated.

Founded in 2015, OfBusiness operates a platform that supplies raw materials like steel, textiles, and pulses to businesses. It also exports food and apparel to global clients, including Lulu, Costco, and Tommy Hilfiger. The company was last valued at around $5 billion in 2021, with major investors including SoftBank Group, Tiger Global (holding a combined 15% stake), and Alpha Wave Global, which owns 18%.

In the fiscal year ending March 2023, OfBusiness reported an after-tax profit of $72.6 million on revenues of $2.3 billion, demonstrating consistent financial strength.

The announcement comes amid a surge in IPO activity in India, with 290 companies raising over $15.5 billion by mid-November 2024, according to data from LSEG. This marks more than double the amount raised in the previous year, reflecting robust investor confidence in the Indian market.

While reports suggest OfBusiness is targeting a valuation of $6 billion to $9 billion, company executives have declined to confirm these figures. The IPO is expected to cement OfBusiness’ position as a key player in India’s burgeoning B2B ecommerce sector.