OfBusiness: Unlocking India's Manufacturing Potential Through Innovative B2B Financing

India's economic story is often dominated by the narrative of its booming IT sector. However, beneath the surface, a quieter revolution is taking place: a $700B Manufacturing Revolution. 

At the forefront of this transformation stands OfBusiness, a B2B platform enabling small and medium enterprises (SMEs) to become the engines of India's industrial growth.

Founded in 2016 by a team of seasoned professionals, including ex-McKinsey and ex-IT veterans, OfBusiness recognized SMEs' critical role in India's manufacturing landscape and the challenges they face in accessing raw materials, financing, and technology. That’s why OfBusiness aimed to bridge this gap by creating a one-stop solution for SMEs.

It functions as a B2B marketplace, connecting SMEs with a diverse range of suppliers for raw materials, including steel, chemicals, polymers, and agricultural commodities. By aggregating demand from various SMEs, they negotiate bulk deals with manufacturers, securing competitive prices for their clients. This not only benefits SMEs by lowering procurement costs but also strengthens their bargaining power in the market.

‍From Marketplace To Financing SMEs

Recognizing the financial constraints faced by many SMEs, they established their non-banking financial company (NBFC), Oxyzo, in 2017. This strategic move allowed OfBusiness to offer SMEs access to working capital loans, facilitating the timely purchase of raw materials and enabling them to scale their operations. Oxyzo has grown rapidly, becoming OfBusiness's second-largest business vertical with a loan book of approximately $280 million.

They understood that technology is a crucial driver of efficiency and growth so they started leveraging it to personalise the buying experience for their clients. By analysing user behaviour, OfBusiness recommends relevant products at competitive prices, streamlining the procurement process. Additionally, they launched BidAssist, a free online tool that helps SMEs profile each opportunity and analyse their individual inputs and behaviour to discover both government and private tenders. BidAssist currently aggregates over 3,500 government tenders daily from across the country, expectedly saving a lot of time for the SMEs. 

Taking Control Of The Supply Chain

Recognizing the fragmented and complex nature of the Indian supply chain, OfBusiness has actively pursued acquisitions. They have acquired 19 companies, primarily operating in areas like steel products, metals, and manufacturing. One of the major acquisitions was Koeleman India, marking their  entry into the food processing sector. All of these acquisitions allowed OfBusiness to gain control over crucial parts of the supply chain like logistics & warehousing etc, and become a major benefactor in famous projects like Mumbai Metro, IOCL, and HPCL refinery, etc.

Furthermore, OfBusiness is actively expanding its global footprint. They operate in over 35 countries, becoming a leading player in the global B2B space.

In FY23, mirroring the robust growth of India's manufacturing sector, OfBusiness's revenue doubled to Rs 15,342.57 crore. This growth is further reflected by its increasing profitability, with net profits doubling to Rs 462.76 crore in the same year. Looking ahead, OfBusiness plans to launch an IPO by December 2024-January 2025, marking a significant milestone in its journey. 

There are few other key players in this industry like Infra Market, founded in 2016, but OfBusiness is generating almost 2x Revenue. 

As India strives to achieve its $1 trillion manufacturing dream, OfBusiness stands as a testament to the nation's entrepreneurial spirit and its potential to become a global manufacturing powerhouse. By empowering SMEs and navigating the complexities of the supply chain, OfBusiness is playing a pivotal role in this quiet yet significant revolution.