OfBusiness is in talks with SoftBank Vision Fund to lead a $100-150 million round of funding. After this round, the platform will increase its value by over $1.5 Billion, making it a unicorn. If the deal is pulled through, the start-up funding and continuing the Japanese investor’s recent deal-making spree, sources said. Early investor Matrix Partners India also plans to sell a part of its stake, which will generate a revenue of $30-40 million cash. Its other investors include Creation Investments and Norwest Venture Partners.
Founded in 2015 by venture capitalist Asish Mohapatra, OfBusiness lends via a non-banking finance company (NBFC) to companies with a turnover between Rs 20-200 crore. It provides the raw material, in addition to capital, and offers credit at an interest rate of 1.5% per month. They aim to provide the best prices to their customers. Its technology platform negotiates with more than 100 manufacturers and suppliers across India to get the best guarantee prices on structural steel, polymer, paper, and cement.
After this round of funding, OfBusiness’s valuation will double to $1.5 billion, which is almost double its last valuation of $800 million two months ago. The company’s growth has been driven by its original lending, as well as B2B model. It has a revenue of Rs 400 crore per month from the eCommerce business alone, where it sells fabrication material.