OfBusiness' lending arm Oxyzo secures Rs 100 crore in debt
25 Feb 2025, 03:19 AMThe proceeds will be used to augment the long-term resources of the company and meet working capital requirements.
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OfBusiness' lending arm Oxyzo has reportedly raised Rs 100 crore (approximately $12 million) in debt from AK Capital Finance, a subsidiary of merchant banker A.K. Capital Services Ltd.
The boards at Oxyzo allotted 1,00,000 non-convertible debentures to AK Capital at an issue price of Rs 10,000 each to raise Rs 100 crore, Entrackr reported citing the company's regulatory filing sourced from the Registrar of Companies shows.
The aforementioned debentures are issued for a tenure of 24 months and carry an interest rate of 9.75% per annum.
The proceeds will be used to augment the long-term resources of the company and meet working capital requirements.
Oxyzo offers a range of loan products, including term loans, working capital solutions, and collateral-free credit options to SMEs.
The Gurugram-based company reported operating revenue of over Rs 900 crore and a profit of Rs 290 crore for the financial year ending 2024. In 2022, the NBFC gained unicorn status by raising $200 million in its first external funding round led by Alpha Wave Global and Tiger Global.
In another news, OfBusiness is transitioning itself into a public company as it gears up for up to $1 billion IPO in 2025. The company has reportedly appointed five investment banks including India's Axis Capital, Morgan Stanley and JPMorgan.
"Citigroup and Bank of America have also been given the mandate to manage the stock offering," Reuters had reported in September 2024 by quoting OfBusiness chief financial officer Bhavesh Keswani.
The IPO will consist of both primary components and an offer for sale (OFS).
In October, Zodius Capital reportedly exited its investment in OfBusiness through a secondary share sale valued at approximately $100-120 million. Zodius Capital realized over $100 million from its initial $8 million investment made in late 2016. The deal valued OfBusiness, which was previously assessed at $5 billion, at approximately $4 billion.
In FY24, OfBusiness’ revenue grew to Rs 19,296 crore in FY24 from 15,343 crore in FY23. At the same time, the profit increased from Rs 463 crore in FY23 to Rs 603 crore in FY24.
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