OfBusiness, an industrial goods and services procurement platform, is preparing to launch a definitive initial public offering (IPO) in 2025. The company has taken the first significant step toward going public by becoming a public entity. According to its regulatory filing, OfBusiness' board of directors has approved a resolution to change its status to a public company and rename it "OFB Tech Private Limited" to "OFB Tech Limited."
OfBusiness is reportedly aiming to raise up to USD 1 billion through its initial public offering (IPO), which will include both primary components and an offer for sale. The company is in talks with Bank of America, Citi, JP Morgan, and Morgan Stanley to serve as its merchant bankers. SoftBank was also planning a $100 million partial exit for Alpha Wave and Z47 (formerly Matrix Partners India) ahead of the IPO.
Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar, and Nitin Jain founded the company, which supplies raw materials across various supply chains such as steel, non-ferrous, petrochemicals, polymers, industrial chemicals, agricultural products, and building materials, among others.
Ofbusiness has raised over USD 650 million in funding rounds, including USD 325 million led by Alpha Wave, Tiger Global, and SoftBank at a valuation of USD 5 billion. According to startup data intelligence platform TheKredible, Alpha Wave is the largest external stakeholder, accounting for 19.16%, followed by Creation Investment and Matrix. Other notable stakeholders in OfBusiness include SoftBank, Norwest, and Tiger Global.
During the fiscal year ending March 2024, the company's revenue increased 25.8% year on year to Rs 19,296 crore from Rs 15343 crore in FY23. Furthermore, profits increased by 30.2% year on year, reaching Rs 603 crore during the same period.
OfBusiness competes against Zetwerk, Infra.Market, and Moglix. During the last fiscal year (FY24), Infra.Makret and Moglix generated gross revenues of Rs 14,530 crore and Rs 4,964 crore, respectively. Zetwerk has yet to report its annual results for FY23, but its GMV was Rs 11,449 crore in FY23.
