Industrial goods and services procurement platform OfBusiness has raised ₹100 crore (~$11.7 million) in fresh funding ahead of its much-anticipated initial public offering (IPO) set for the second half of 2025. The latest round was led by Cornerstone Ventures, marking a strategic investment through its $200 million second fund.
This new capital infusion brings OfBusiness’ total fundraising to over $650 million, with past participation from marquee investors such as Alpha Wave, Tiger Global, and SoftBank. The startup was last valued at $5 billion during a $325 million round led by these global investment firms.
According to the company, the fresh funds will be strategically deployed to enhance digital adoption and financial access for small and medium enterprises (SMEs)—a key segment in India’s growing manufacturing and infrastructure landscape.
Driving Growth Through Digital Solutions
Founded in 2016 by a team of entrepreneurs—Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain—OfBusiness offers a unique blend of raw material procurement and financing solutions tailored for SMEs. Its tech-driven platform streamlines supply chain operations and credit facilitation for businesses in core industrial sectors.
Alpha Wave remains the largest external stakeholder with a 19.16% ownership, followed by Creation Investment and Matrix Partners, as per startup intelligence platform TheKredible. Other prominent backers include SoftBank, Norwest, and Tiger Global.
Financial Performance & Market Landscape
In FY24, OfBusiness reported robust financial performance, with revenue rising 25.8% YoY to ₹19,296 crore, up from ₹15,343 crore in FY23. Net profits surged by 30.2% YoY, reaching ₹603 crore.
The company operates in a competitive landscape alongside industrial commerce giants like Zetwerk, Infra.Market, and Moglix. In FY24, Infra.Market and Moglix reported gross revenues of ₹14,530 crore and ₹4,964 crore, respectively.
Cornerstone’s Strategic Bet
Cornerstone Ventures’ investment underscores growing investor interest in platforms that serve the SME ecosystem—a critical driver of India’s economic growth. The VC firm’s $200 million second fund, launched last year, marked its first close at $40 million in January and is targeting a second close by the end of 2025.
As OfBusiness gears up for its IPO, the company is well-positioned to leverage its capital, technology, and market traction to cement its status as a leader in India’s B2B commerce and financial services space.