Oxyzo Financial Services Raises $200 Million, Turns Unicorn

Oxyzo started as OfBusiness Group's financing platform that provided cash flow matched working capital financing for buying raw materials for SMEs

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Oxyzo Financial Services, a tech-enabled smart financing solution provider, announced its $200 million Series A raise led by Alpha Wave and co-led by Tiger Global, Norwest Venture Partners, Matrix Partners and Creation Investments.

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The round values the company at $1 billion. Oxyzo started as OfBusiness Group's financing platform that provided cash flow matched working capital financing for buying raw materials for SMEs in the traditional sectors of the economy as manufacturing and sub-contracting. In the next phase of its growth, Oxyzo expanded to value chains beyond OfBusiness' B2B raw material platform with a diversified product suite and a broader customer base to include SMEs, mid-corporates, as well as the new age economy.

Oxyzo has grown to an AuM of $350 million with a 100 per cent Y-o-Y growth while maintaining its GNPA at 1.2 per cent, even through the COVID period, the company said in a statement. It further said that the company has leveraged proprietary tech systems to ensure proactive monitoring and operating efficiencies at scale resulting in the business having an Opex of 2.5 per cent.

"Oxyzo, has inherited highest standards of Corporate Governance and Compliances from its parent OfBusiness, which has been instrumental in both entities becoming earliest to be rated A+ (by ICRA), in their respective categories. Both OfBusiness and Oxyzo have a strong borrowing profile enjoying confidence across 50+ financial institutions. The Company believes that the growth of fresh talent coupled with the right risk experience and architecture has been at the heart of innovation and execution," said Asish Mohapatra, CEO, OfBusiness Group,.

Commenting on the raise, Ruchi Kalra, Cofounder and CEO Oxyzo said, "With emergence of the digital economy, we see a marked shift in the emerging needs and servicing approach in the B2B segment. We want to be at the forefront of this as a diversified financial services company, differentiated through its innovative financial products and digital platforms on the back of strong credit and origination capabilities. We are very excited about our next phase of growth as we further embed ourselves digitally into the SME, mid-corporate and the new age supply chains."

Oxyzo aims to continuously innovate in B2B financial services space through end-to-end capabilities across origination, deployment, curated structuring and distribution enabled through technology. The funds will be used to expand Oxyzo's broader digital financial services play organically and inorganically across a strong own balance sheet play, scaling the supply chain marketplace, launching innovative fixed income products for the SME space, and scaling other fee incomes business lines including debt capital markets and securities.

"We are pleased to back Ruchi, Vasant and team as they scale Oxyzo to become India's leading platform focused on SME supply chain financing and structured products. We've been fortunate to be their partners for a while, and have seen an impressive scale-up with best-in-class risk management despite strong headwinds from Covid. We look forward to helping build a high-single-digit RoA business that compounds over a long runway," said Navroz D. Udwadia, co-founder and partner, Alpha Wave Global,