OfBusiness, a well-known Indian startup, became the latest to enter the unicorn club. It is a platform known for sourcing credit capital and raw material for small businesses.
The platform managed to raise an amount of $160 million in one single round initiated by Softbank Vision Fund, and the value of the company was $1.5 billion. It became the eighteenth Indian startup to earn unicorn status in the current year.
The New Delhi– a headquartered platform that sells raw material to industries and provides credit to small businesses, has earned the fourth financing round. It is valued at an amount of $5 billion this year. The startup was valued at $800 million in the closing time of April this year.
OfBusiness works as a raw material provider and a helping hand to the small businesses with the credit. The platform works with integration from banks which will provide credit to the company and hence to the small business entrepreneurs and medium businesses with an annual turnover of less than $3 million.
It runs in nine business-to-business raw material supply chains to meet the company’s need, said the co-founder and VC of the six-year-old OfBusiness Ashish Mohapatra.
OfBusiness FOUNDERS
Founded by Ashish Mohapatra, Nitin Jain, Ruchi Kalra, Vasant Sridhar, and Bhuvan Gupta in 2015, OfBusiness was led by a team who had completed their education from the top most institutions in India.
They were from IIT Delhi, IIT Kharagpur, BITS Pilani, FMS Delhi, and other top institutions. They had work experience at the most prestigious enterprises like Mckinsey, ITC, and Royal Bank of Scotland.
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TECH-DEVELOPMENT
For business development, they had supported a fantastic tech team to work on the raw material procurement and credit for small and medium businesses with a focus and motive to expand the business.
The company is based on meeting the demands of the businesses in need of raw materials like petrochemicals, agro commodities, polymers, metals, chemicals, and building materials.
They have also managed to build a strong credit business for themselves. 43% of the total revenue is earned by the credit system, followed by sales of raw material by 55% and the rest 2% by its SaaS offerings.
The business collects data on the customer’s activity and needs and history to collect the information to write loans for businesses that trust the platform and use it up to their use for sourcing their raw material needs and capital needs.
So, OfBusiness has set a long journey to conquer in the past six years, and it kept on setting milestones on its success journey. Within some time of their running.
They noticed that the biggest hurdle in the way of small businesses is related to the capital, and this realization was the drive that made Mohapatra get into the business of providing capital by joining hands with leaders.
When he realized the need, he said in a podcast last year that he had little to no knowledge of the idea he had in his mind.
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