OfBusiness: Transforming SME Procurement and Financing with Technology-Driven Solutions

OfBusiness is a tech-enabled platform that facilitates raw material procurement and credit for SMEs in the manufacturing and infrastructure sectors. It integrates technology with SMEs' buying behavior to provide better products, prices, and timelines, with comprehensive online and offline support. OfBusiness offers access to cash flow-based financing for raw material purchases through its NBFC 'Oxyzo Financial Services' and provides tech services like BidAssist for new growth opportunities. The company values hunger and hustle, selecting the best candidates from over 5000 applications yearly to join its mission.

This blog is designed to provide aspiring candidates with a comprehensive overview of Ofbusiness, covering its history, culture, services, and career opportunities, to help you prepare effectively for interviews and embark on a successful career with this esteemed institution.

1. Overview of OfBusiness

About

Attribute	Details
Founders	Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta
Industry Type	B2B
Founded	2015
Headquarters	Gurugram, India

History

Founding Year (2015)

2015: Founding Year

Incorporated as OFB Tech Pvt Ltd.
Founded by Asish Mohapatra, Ruchi Kalra, and Bhuvan Gupta.

Initial Growth and Funding (2016-2017)

2016: Initial Funding and Expansion

OXYZO Financial Services Pvt Ltd was incorporated as a non-banking financial company (NBFC).
Raised $5 million in Series A funding.

2017: Licensing and Growth

Received NBFC license.
Raised ₹75 crore in Series B funding.
Crossed ₹100 crore in book value.

Expansion and Recognition (2018-2019)

2018: Operational Expansion

Expanded operations to 13 states.
Raised $29 million in Series C funding.

2019: Significant Milestones

OXYZO crossed ₹500 crore in assets under management (AUM).
Raised $34 million in Series D funding.
Listed on the Debt Market segment of BSE.
Ranked among Top Fintech Startups by Inc42 Soonicorn Club.

Major Achievements and Growth (2020-2021)

2020: Credit Rating Upgrade and Major Funding

Achieved credit rating upgrade from BBB+ to A by CRISIL Limited.
Raised $110 million in Series D2 funding.
Listed in India’s Soonicorn Club.
Recognized among High Growth Companies in Asia-Pacific and India's Growth Champions by Economic Times.

2021: Unicorn Status and Major Funding Rounds

Raised $159 million in Series E funding at a $1.5 billion valuation.
Became ISO 27001 certified for information security management.
Raised $207 million in Series F funding at a $3 billion valuation.
Joined the Unicorn Club with a $1.5 billion valuation.
Raised $325 million in Series G funding at a $5 billion valuation.
Achieved another credit rating upgrade from BBB+ to A by CRISIL Limited.

Key Milestones in Ofbusiness' History

Year	Milestone
2015	Incorporated as OFB Tech Pvt Ltd.
2016	- Incorporated OXYZO Financial Services Pvt Ltd as an NBFC. - Raised $5 million in Series A funding.
2017	Received NBFC license and raised ₹75 crore in Series B funding.
2019	OXYZO crossed ₹500 crore in assets under management (AUM) and raised $34 million in Series D funding.
2020	Achieved credit rating upgrade from BBB+ to A by CRISIL Limited and raised $110 million in Series D2 funding.
2021	- Joined the Unicorn Club with a $1.5 billion valuation after raising $159 million in Series E funding. - Raised $325 million in Series G funding at a $5 billion valuation.

2. Company Culture

Mission, Vision, and Values

Mission: OfBusiness aims to facilitate raw material procurement and credit for SMEs in the manufacturing and infrastructure sectors, integrating technology to enhance the buying behavior of SMEs. This mission reflects a commitment to providing better products, prices, and timelines while ensuring comprehensive support.
Vision: While not explicitly stated, the vision can be inferred as striving to empower SMEs by creating a seamless ecosystem for procurement and financing, ultimately enhancing their growth and sustainability in the market.

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Core Values: Warrior Spirit, Unrivalled Culture, Integrity, Industry Excellence, Customer Centricity.

3. Comprehensive Product and Service Offerings at OfBusiness

OfBusiness is a tech-enabled platform that facilitates raw material procurement and credit for small and medium enterprises (SMEs) in the manufacturing and infrastructure sectors. The company integrates technology into the procurement process, enabling SMEs to access better products, prices, and timelines, supported by comprehensive online and offline services.

1. Aggregator

Ecosystem Development: OfBusiness serves as an aggregator, enabling a buyer and supplier ecosystem to connect effectively and supply the best raw materials across the globe.

2. Raw Material Procurement

Diverse Categories: OfBusiness facilitates procurement across a wide range of raw materials, including:

Metals: Steel, TMT bars, and other metal products.
Chemicals: Various industrial chemicals for manufacturing processes.
Polymers: Plastics and synthetic materials.
Agricultural Commodities: Grains, pulses, and other agri-products.
Petrochemicals: Fuels and chemical products derived from petroleum.
Building Materials: Cement, bricks, and construction aggregates.
Textiles: Fabrics and other textile materials.
Solar Panels: Renewable energy components.

Marketplace Functionality: The platform aggregates bulk purchases to negotiate better prices and terms for SMEs, ensuring cost-effective procurement.

3. Manufacturing

World-Class Facilities: OfBusiness operates over 30 world-class manufacturing and processing plants across various sectors, including Steel, Aluminium, Energy, Chemicals, and Agriculture, ensuring a steady supply of high-quality raw materials.

4. Importer & Exporter

Global Reach: OfBusiness is recognized as one of India's largest importers and exporters in categories such as Steel and Agriculture, enhancing its capability to source materials globally and meet diverse customer needs.

5. Financing Solutions

Oxyzo Financial Services:

Cash Flow-Based Financing: Provides SMEs with access to credit based on their cash flow cycles, allowing them to purchase raw materials without financial strain.
Loan Amounts: Offers loans ranging from small to substantial amounts, tailored to the needs of different SMEs.
Competitive Interest Rates: Interest rates ranging from 15% to 18%, significantly lower than traditional financing options.
Unsecured Credit Lines: SMEs can access unsecured credit limits of up to ₹2 crore, facilitating easier procurement without collateral.

Purchase Financing: This innovative financing model aligns with the cash flow cycles of traditional sectors, enabling SMEs to access institutional credit as an alternative to high-cost distributor financing.

Supplier Financing Solutions: Allows suppliers to receive payment upfront, improving their cash flow while enabling SMEs to negotiate better terms.

Tailored Project Financing: Financing solutions specifically designed for projects, helping SMEs manage larger contracts and capital expenditures.

6. Tech Services

SaaS & AI Innovations: OfBusiness is at the forefront of technological innovation with its industry-first SME B2B SaaS offerings, including:

Ved AI: Leveraging artificial intelligence to enhance procurement processes.
BidAssist: A platform that simplifies the bidding process for government and private tenders, helping SMEs identify new growth opportunities.
SMEAssist: Additional tech services aimed at supporting SMEs in various operational aspects.

Integrated Technology Solutions: OfBusiness leverages technology to enhance the procurement experience, making it more efficient and user-friendly for SMEs.

7. Comprehensive Support

Online and Offline Support: OfBusiness provides extensive support to SMEs through both digital and personal channels, ensuring that clients receive the assistance they need throughout the procurement and financing process.
Logistics Support: The company offers logistics solutions to ensure timely and efficient delivery of raw materials to SMEs.
Fulfillment and Logistics Management: Manages logistics to ensure timely delivery of raw materials, enhancing operational efficiency.

8. Value-Added Services

Market Insights and Analytics: Provides SMEs with valuable market data and insights to help them make informed purchasing decisions.
Risk Management Solutions: Offers tools and resources to help SMEs manage financial risks associated with procurement and financing.

4. Financial Performance and Market Position

OfBusiness has established itself as a significant player in the B2B commerce and fintech sectors, particularly focusing on small and medium enterprises (SMEs) in India. Below is a detailed overview of its financial performance and market position:

Financial Performance

Profitability: OfBusiness has been profitable since its inception. In FY22, the company reported a net profit of INR 201.11 crore, a 3.6x increase year-on-year from INR 55.6 crore in FY21.
Revenue Growth: The revenue from operations surged over four-fold to INR 7,139 crore in FY22, up from INR 1,747 crore in the previous fiscal year. The total income also increased by 313% to INR 7,269 crore.
Annual Revenue Run Rate: As of 2021, OfBusiness reported an annual revenue run rate of $1.4 billion.
Gross Merchandise Value (GMV): The company was reported to be doing over $120 million in GMV as of December 2021.
Operating Expenses: Total expenses grew significantly, increasing by 316% to INR 6,993.55 crore in FY22 from INR 1,680 crore in FY21, with purchases of stock-in-trade accounting for the largest portion of expenses.
Cash Flow: Cash flow from operations rose 4.1x to INR 2,016.10 crore from INR 496.10 crore in FY21.

Market Position

Unicorn Status: OfBusiness entered the unicorn club in 2021 after raising $160 million in a funding round led by SoftBank Vision Fund-II. The company’s valuation reached $5 billion after its latest funding round of $325 million in December 2021.
Registered SMEs: The platform has over 700,000 registered SMEs, indicating a strong user base and market penetration. The app has been downloaded more than 5,000 times.
Funding and Investors: OfBusiness has raised a total of approximately $678.8 million from notable investors including SoftBank Vision Fund, Tiger Global, Norwest Venture Partners, and Matrix Partners.
Competitive Landscape: OfBusiness competes with other B2B marketplaces like Infra.Market, Moglix, and Zetwerk, positioning itself as a key player in the building materials and raw material procurement space.
Financing Solutions: Through its NBFC, Oxyzo Financial Services, OfBusiness provides unsecured credit of up to INR 2 crore to SMEs, enhancing its market position by addressing the financing needs of businesses in the manufacturing and infrastructure sectors.
Network Effect: The financing service has created a "network effect," where satisfied customers refer other businesses, further expanding OfBusiness's reach without incurring customer acquisition costs.

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5. Key Competitors

Competitors of OfBusiness

OfBusiness operates in a competitive landscape with several key players in the B2B commerce and fintech sectors. Here are the primary competitors of OfBusiness:

1. Infra.Market

Overview: Founded in 2016 and headquartered in Thane, Maharashtra, Infra.Market is a leading construction materials company in India. It provides a technology-enabled e-commerce platform for construction materials and solutions.
Key Offerings:
- Offers a wide range of building materials, including Ready-Mix Concrete (RMC), aggregates, construction chemicals, steel, AAC blocks, and more.
- Focuses on private-label construction products and has an ISO-certified R&D center.
- Operates over 30 retail touchpoints across India and has expanded through acquisitions, including a construction equipment rental company.
Business Model: Infra.Market leverages digitization in its supply chain to enhance efficiency, transparency, and quality control. The company aims to establish itself as a one-stop destination for construction materials.

2. Zetwerk

Overview: Founded in 2018 and based in Bengaluru, Zetwerk is a B2B manufacturing service marketplace that connects manufacturers with suppliers of raw materials for customized products.
Key Offerings:
- Provides services across various sectors, including transportation, industrial machinery, consumer products, and electronics.
- Focuses on facilitating customized manufacturing solutions, helping businesses streamline their production processes.
Market Position: Zetwerk is recognized for its innovative approach to manufacturing and supply chain management, generating significant revenue in the B2B space.

3. Moglix

Overview: Established in 2015 and headquartered in Singapore, Moglix is a B2B e-commerce platform specializing in the procurement of industrial supplies.
Key Offerings:
- Offers a wide range of products, including safety gear, power tools, office supplies, electrical equipment, and healthcare supplies.
- Primarily serves the manufacturing and industrial sectors, providing essential tools and equipment necessary for operations.
Market Impact: Moglix has positioned itself as a key player in the industrial supply chain by leveraging technology to enhance procurement efficiency.

4. Udaan

Overview: Founded in 2016 and based in Bengaluru, Udaan operates as a B2B e-commerce platform that connects manufacturers, wholesalers, and retailers.
Key Offerings:
- Provides insights into market trends and helps businesses scale through its trade ecosystem.
- Focuses on facilitating transactions between small and medium businesses, offering a platform for sourcing products across various categories.
Business Model: Udaan aims to empower SMEs by providing them with the tools and resources needed to grow in the competitive e-commerce landscape.

5. Bizongo

Overview: Founded in 2015 and based in Mumbai, Bizongo specializes in vendor digitization and embedded financing within the B2B sector.
Key Offerings:
- Offers a platform that digitizes vendor operations and integrates financing solutions for businesses.
- Focuses on providing packaging solutions and streamlining the procurement process for various industries.
Market Niche: Bizongo aims to simplify the supply chain for businesses by leveraging technology to enhance operational efficiency.

OfBusiness is deeply committed to Corporate Social Responsibility (CSR), focusing on making a positive impact on society and the environment.

- Providing scholarships and financial assistance to underprivileged students.
- Supporting schools and educational institutions with infrastructure development and teaching resources.

- Implementing skill development programs for women.
- Promoting women's entrepreneurship and financial independence.

- Organizing health camps and awareness programs.
- Improving access to clean drinking water and sanitation facilities in underserved communities.

- Supporting sustainable agricultural practices and farmer welfare initiatives.
- Developing rural infrastructure and promoting entrepreneurship in rural areas.

- Implementing waste management and recycling programs.
- Promoting renewable energy and energy efficiency measures.

7. Interview Questions at OfBusiness

Typical interview questions at OfBusiness often focus on assessing a candidate's skills, experiences, and alignment with the company's values. Here are some common questions you might encounter:

General Interview Questions

Tell me about yourself.
What do you know about OfBusiness and its mission?
Why do you want to work at OfBusiness?
How do you handle stress and pressure?
What are your strengths and weaknesses?
Describe a challenging situation you faced and how you overcame it.
How do you prioritize your work?
What motivates you in your work?
How do you handle feedback and criticism?
Where do you see yourself in five years?

Questions About Experience And Background

Can you describe your previous work experience related to this role?
What specific skills do you bring to this position?
Have you worked in a startup environment before? If so, describe your experience.
Can you provide an example of a successful project you managed?
What tools or software are you proficient in that are relevant to this position?
Have you ever had to work with a difficult team member? How did you handle it?
What was your role in your last job, and what were your main responsibilities?
How have you contributed to your previous organization's success?
What do you consider your biggest professional achievement?
Can you discuss any relevant certifications or training you have completed?

In-Depth Questions

How do you approach problem-solving in your work?
Describe a time when you had to analyze data to make a decision. What was the outcome?
How do you stay updated on industry trends and developments?
What strategies do you use to ensure effective communication within a team?
Can you explain a complex concept to someone without a technical background?
How do you measure success in your role?
Discuss a time when you had to adapt to significant changes in the workplace.
What is your understanding of the challenges faced by SMEs in India?
How would you handle a situation where a project is falling behind schedule?
What innovative ideas do you have that could benefit OfBusiness?

8. Future Outlook and Strategic Plans

Future Outlook of OfBusiness

Initial Public Offering (IPO): OfBusiness is gearing up for its IPO, now expected between December 2024 and January 2025. The delay is attributed to market conditions and the upcoming general elections in India, which could affect investor sentiment. The IPO aims to provide an exit opportunity for early investors and enhance corporate governance standards within the company.
Market Positioning: The company has experienced significant growth, with a reported revenue run rate of approximately $1.4 billion and a profit increase of 72% in 2021. OfBusiness aims to continue this trajectory by focusing on sustainable business practices and expanding its market presence among small and medium enterprises (SMEs) in the manufacturing and infrastructure sectors.
Cautious Approach to Market Conditions: OfBusiness is being cautious about the participation of foreign institutional investors in Indian offerings due to the global tech IPO market's downturn. The company recognizes the importance of timing its IPO to align with favorable market conditions, particularly after the general elections when investor interest may increase.

Strategic Plans

Expansion of Services: OfBusiness plans to further integrate its commerce and lending platforms, enhancing support for SMEs. Its financial services arm, Oxyzo Financial Services, is expected to play a critical role in this strategy, offering cash flow-based financing for raw material procurement.
Focus on Technology and Innovation: The company is committed to leveraging technology to improve its offerings, including enhancing its platform for raw material procurement and expanding tech services like BidAssist, which helps SMEs identify new growth opportunities in the public sector.
Corporate Governance Commitment: As part of its strategic plans, OfBusiness emphasizes good corporate governance, which is seen as essential for achieving a premium valuation during its IPO. The company believes that maintaining high standards of transparency and accountability will attract investors and support long-term growth.
Long-Term Vision: The co-founders have expressed a strong desire to see OfBusiness succeed and grow over the long term, aiming to solidify its position as a leading B2B e-commerce and fintech platform in India. The company is focused on helping SMEs scale effectively through innovative solutions and financial support.

9. Conclusion

OfBusiness stands at the forefront of transforming the supply chain landscape for small and medium enterprises (SMEs) in India. With its innovative platform, the company empowers businesses by providing access to essential resources and financial support. As it prepares for its upcoming IPO, OfBusiness aims to enhance its market presence and continue its trajectory of growth. The commitment to leveraging technology and fostering strong relationships with SMEs positions OfBusiness as a pivotal player in the B2B sector. Looking ahead, the company’s focus on sustainable practices and corporate governance will be crucial in achieving long-term success and delivering value to stakeholders.

Key Takeaways for Aspiring OfBusiness Candidates:

Embrace a Collaborative Culture: OfBusiness fosters a collaborative work environment where open communication and teamwork are valued. Candidates should be prepared to engage with peers and contribute to a positive team dynamic.
Focus on Impactful Roles: The company offers roles that allow employees to make significant contributions to the growth of small and medium enterprises (SMEs). Aspiring candidates should be ready to take on responsibilities that drive meaningful change.
Commitment to Learning and Development: OfBusiness emphasizes continuous learning through various training and development programs. Candidates should demonstrate a willingness to learn and grow within their roles.
Adaptability and Resilience: Working in a fast-paced startup environment requires adaptability and the ability to handle challenges. Candidates should showcase their resilience and problem-solving skills during the interview process.
Alignment with Company Values: Understanding and aligning with OfBusiness's mission to support SMEs is crucial. Candidates should express their enthusiasm for the company's goals and how they can contribute to its success.

By focusing on these key takeaways, aspiring candidates can effectively position themselves for success at OfBusiness. Preparation, alignment with the firm's values, and a strong network can significantly enhance your application. Emphasizing relevant experiences and demonstrating genuine enthusiasm will help you stand out in a competitive recruitment process.