Daijiworld Media Network - New Delhi
New Delhi, Oct 5: Indian B2B commerce and financing platform OfBusiness is planning to raise $600-800 million through an initial public offering (IPO), with the Gurugram-based profitable startup expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) by November, according to merchant bankers familiar with the development.
The IPO is likely to be launched in March or April next year and is expected to value the company at around $4.4-5 billion, its existing valuation.
About 30 per cent of the proposed issue is expected to comprise a fresh issue of shares, while the remaining 70 per cent will be an offer for sale (OFS) by existing shareholders.
OfBusiness, which helps small and medium enterprises (SMEs) meet their business and financing requirements, reported revenue of around Rs 20,000 crore in the 2025-26 financial year. The company has appointed Morgan Stanley, JPMorgan, Citibank and Axis Capital as merchant bankers for the proposed issue.
OfBusiness did not respond to a query regarding the proposed IPO.
Founded nearly a decade ago by Indian School of Business alumni Asish Mohapatra and his wife Ruchi Kalra, along with two other partners, the company operates across four major B2B commerce verticals — metals, apparel, chemicals and food processing.
The platform connects SME suppliers with buyers, including SMEs with annual revenues ranging from Rs 50 crore to Rs 500 crore as well as large Indian and global companies.
Besides facilitating B2B trade, OfBusiness has expanded into manufacturing and sells private-label products, particularly in the apparel and metals segments. The company has invested more than Rs 3,000 crore in acquiring, establishing and expanding over 17 wholly owned manufacturing and packaging subsidiaries.
These subsidiaries are currently being merged into OfBusiness, a process that is expected to be completed soon. Its financing business, which provides credit to SMEs and in which OfBusiness holds a 70 per cent stake, will continue as a separate entity.
According to company documents, OfBusiness has raised around Rs 5,000 crore through various funding rounds from prominent investors including SoftBank Vision Fund, Tiger Global, Alpha Wave Global and Matrix Partners.
The company has projected revenue of Rs 23,520 crore for the 2026-27 financial year, after recording a compound annual growth rate of 13 per cent over the past five years.
OfBusiness has been profitable since the 2017-18 financial year. It reported a profit before tax of Rs 780 crore in FY26 and has projected an increase in operating cash flow from Rs 1,220 crore in FY26 to Rs 1,302 crore in FY27.
The company has projected free cash flow after investments at Rs 278 crore for FY27.
Across its various business verticals, OfBusiness manufactures, processes or packages an average of about 40 per cent of the products it sells through its own facilities. The proportion is significantly higher in certain segments, reaching around 80 per cent in apparel and 70 per cent in food processing.
The company also works with major global brands including Uniqlo, H&M, Ikea, Zara, Adidas and Michael Kors for orders involving garments, handbags, footwear and belts. While the final products are assembled at its factories, OfBusiness relies on a network of micro and small enterprises for materials such as fabric, yarn, buttons, trims and threads.
The proposed IPO is expected to provide an opportunity for existing investors to partially exit while enabling OfBusiness to raise fresh capital as it expands its B2B commerce and manufacturing operations.