Building A First-Of-Its Kind SME Financing Platform For Raw Material Procurement

Fintech & Financial Services Startup50

In Startup50 2017: OfBusiness stands out for being a first-of-its-kind technology-driven SME financing platform for procurement of raw materials with a product fulfilment engine. In just 17 months since its inception, the company has scaled up net disbursals on the platform to an impressive Rs. 40 crore per month

Founders: Asish Mohapatra, Bhuvan Gupta, Chandranshu Sinha, Nitin Jain, Ruchi Kalra, Srinath Ramakkrushnan, Vasant Sridhar

First-mover advantage: Established in 2015, OfBusiness serves as a single-window for SMEs to get secured and unsecured credit lines, which the SMEs can use for cost effective procurement of raw material on the platform. The company, in turn, aggregates these raw materials and passes on the benefits of bulk aggregation to the SMEs. Its ‘win-win’ model of combining financing with raw material purchase is a global first. Through ‘purchase financing’ it guarantees end use of the credit lines and ensures best in class business yields.

Quick to increase disbursals: In 17 months of operation, OfBusiness has grown disbursals on the platform to Rs. 40 crore. It has also attracted a Rs. 75 crore limit from Kotak Mahindra Bank that shows great belief in its operating model.

A show of strength: OfBusiness has built an ecosystem of strong senior and mid-level managers that believe in its vision to serve Indian SMEs with a passion. Another confidence building measure is that 65 per cent of the company’s monthly business comes from repeat customers.

In December 2016, it raised Rs. 71 crore in its Series-B funding round led by Zodius Technology Opportunities Fund with participation from existing investors Matrix Partners India and other angel investors. The company will use these funds towards increasing its footprint to cover over 30 clusters. Previously, OfBusiness raised a Series-A of Rs. 33 crore in a round led by Matrix Partners India.


Quick Facts:

  • OfBusiness’ model of combining financing with raw material purchase is a global first
  • In 17 months of operation, it has grown disbursals on the platform to Rs. 40 crore
  • OfBusiness has also attracted a Rs. 75 crore limit from Kotak Mahindra Bank
  • In December 2016, it raised Rs. 71 crore in its Series-B funding round led by Zodius Technology Opportunities Fund  with participation from existing investors Matrix Partners India and other angel investors

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