OfBusiness aims to expand service offerings; awaiting NBFC license

OfBusiness, the online business to business financing platform, aims to add several services on its platform ranging from project financing and bill discounting to capital equipment financing as it awaits its non-banking financial company (NBFC) license from Reserve Bank of India. The license will grant the company the flexibility of structuring its product ¬¬ providing both financial credit and raw material credit. As of now, raw material financing accounts for 92% of its business.

The startup, founded in 2015 by Asish Mohapatra, a former director at Matrix Partners, Bhuvan Gupta, ex-vice president of engineering at Snapdeal and former McKinsey partner Ruchi Kalra, caters to small and medium enterprises (SME) within the revenue range of INR2200 crore from the segments of metal manufacturing, small infrastructure contractors, polymer manufacturing, by providing them raw material on credit. It is backed by Zodius Technology Opportunities Fund and Matrix Partners India. OfBusiness clocked revenues of INR220 crore in FY17, and expect three-fold jump in FY18. The founders maintain that the reason for them to reach profitability in a short time is their business model which earns them dual margins – from interest and high volume discounts, and minimal spending on marketing.