Oxyzo's Bold Move: Securing Funds and Eyeing the Public Market
March 1, 2025, 3:51 pm
Oxyzo Financial Services Limited is making waves in the financial sector. The lending arm of the OfBusiness group has successfully raised ₹100 crore through non-convertible debentures (NCDs). This strategic move, announced on February 24, 2025, signals Oxyzo's ambition to expand its footprint in the competitive lending landscape.
The allotment of these NCDs took place on February 18, 2025. Merchant banker AK Capital Finance Limited played a pivotal role, subscribing to 100,000 debentures, each priced at ₹10,000. The bonds come with an attractive annual coupon rate of 9.75%, maturing in two years on February 18, 2027. They are secured by collateral worth 110% of the outstanding principal, providing a safety net for investors.
Oxyzo is not just another player in the lending game. It specializes in structured credit, focusing on supply chain financing solutions. This niche allows Oxyzo to cater to the unique needs of small and medium enterprises (SMEs) in India. By offering cash flow-based lending, Oxyzo empowers businesses to enhance their operational efficiency and drive growth.
The backdrop of this funding is the larger narrative of OfBusiness, Oxyzo's parent company. Founded in 2015, OfBusiness has rapidly ascended to become one of India's most profitable unicorns. The company reported a net profit of ₹463.3 crore in FY23, more than doubling its earnings from the previous year. Its revenue also soared, reaching ₹15,300 crore. This impressive growth story is a testament to the robust demand for B2B services in India.
OfBusiness is backed by SoftBank, a giant in the investment world. This support has propelled OfBusiness into discussions for a potential $500 million IPO, targeted for August 2026. Investment bankers, including Kotak Investment Banking, are in the mix, strategizing the public offering. This IPO will feature both primary and secondary share offerings, a move that could further solidify OfBusiness's position in the market.
Oxyzo, with over 70% ownership by OfBusiness, is also eyeing a public listing. However, its timeline appears to be more cautious, suggesting a later stage for its IPO. The company became a unicorn in 2022, a milestone that reflects its rapid growth and market acceptance. In FY23, Oxyzo reported a profit of ₹200 crore on a revenue of ₹570 crore, showcasing its financial health and operational efficiency.
The Indian lending landscape is evolving. SMEs are the backbone of the economy, and Oxyzo's tailored financial solutions are designed to meet their specific needs. The company's focus on supply chain financing is particularly relevant in a country where many businesses struggle with cash flow. By providing timely and efficient lending solutions, Oxyzo is not just facilitating growth; it is fostering innovation and resilience among SMEs.
The issuance of NCDs is a strategic play. It allows Oxyzo to raise capital without diluting equity. This approach is crucial for maintaining control while fueling growth. The secured nature of these bonds adds an extra layer of appeal for investors, who are always on the lookout for safe yet lucrative opportunities.
As Oxyzo prepares for its future, the market watches closely. The potential IPO of OfBusiness could set the stage for Oxyzo's own public offering. Investors are keen to see how these developments unfold. The success of the NCD issuance may pave the way for more innovative financing solutions in the future.
In a world where financial agility is paramount, Oxyzo stands out. Its commitment to empowering SMEs through structured credit is commendable. The company is not just about numbers; it’s about creating opportunities. Each loan is a lifeline for a business, a chance to grow, innovate, and thrive.
The road ahead is filled with possibilities. Oxyzo's recent funding is a stepping stone toward greater ambitions. The financial landscape is ripe for disruption, and Oxyzo is poised to lead the charge. With a strong foundation and a clear vision, the company is ready to navigate the complexities of the public market.
In conclusion, Oxyzo Financial Services Limited is more than a lending entity. It is a catalyst for change in the Indian SME sector. As it secures funds and eyes a public listing, the company embodies the spirit of innovation and resilience. The future looks bright, and Oxyzo is ready to shine.
The allotment of these NCDs took place on February 18, 2025. Merchant banker AK Capital Finance Limited played a pivotal role, subscribing to 100,000 debentures, each priced at ₹10,000. The bonds come with an attractive annual coupon rate of 9.75%, maturing in two years on February 18, 2027. They are secured by collateral worth 110% of the outstanding principal, providing a safety net for investors.
Oxyzo is not just another player in the lending game. It specializes in structured credit, focusing on supply chain financing solutions. This niche allows Oxyzo to cater to the unique needs of small and medium enterprises (SMEs) in India. By offering cash flow-based lending, Oxyzo empowers businesses to enhance their operational efficiency and drive growth.
The backdrop of this funding is the larger narrative of OfBusiness, Oxyzo's parent company. Founded in 2015, OfBusiness has rapidly ascended to become one of India's most profitable unicorns. The company reported a net profit of ₹463.3 crore in FY23, more than doubling its earnings from the previous year. Its revenue also soared, reaching ₹15,300 crore. This impressive growth story is a testament to the robust demand for B2B services in India.
OfBusiness is backed by SoftBank, a giant in the investment world. This support has propelled OfBusiness into discussions for a potential $500 million IPO, targeted for August 2026. Investment bankers, including Kotak Investment Banking, are in the mix, strategizing the public offering. This IPO will feature both primary and secondary share offerings, a move that could further solidify OfBusiness's position in the market.
Oxyzo, with over 70% ownership by OfBusiness, is also eyeing a public listing. However, its timeline appears to be more cautious, suggesting a later stage for its IPO. The company became a unicorn in 2022, a milestone that reflects its rapid growth and market acceptance. In FY23, Oxyzo reported a profit of ₹200 crore on a revenue of ₹570 crore, showcasing its financial health and operational efficiency.
The Indian lending landscape is evolving. SMEs are the backbone of the economy, and Oxyzo's tailored financial solutions are designed to meet their specific needs. The company's focus on supply chain financing is particularly relevant in a country where many businesses struggle with cash flow. By providing timely and efficient lending solutions, Oxyzo is not just facilitating growth; it is fostering innovation and resilience among SMEs.
The issuance of NCDs is a strategic play. It allows Oxyzo to raise capital without diluting equity. This approach is crucial for maintaining control while fueling growth. The secured nature of these bonds adds an extra layer of appeal for investors, who are always on the lookout for safe yet lucrative opportunities.
As Oxyzo prepares for its future, the market watches closely. The potential IPO of OfBusiness could set the stage for Oxyzo's own public offering. Investors are keen to see how these developments unfold. The success of the NCD issuance may pave the way for more innovative financing solutions in the future.
In a world where financial agility is paramount, Oxyzo stands out. Its commitment to empowering SMEs through structured credit is commendable. The company is not just about numbers; it’s about creating opportunities. Each loan is a lifeline for a business, a chance to grow, innovate, and thrive.
The road ahead is filled with possibilities. Oxyzo's recent funding is a stepping stone toward greater ambitions. The financial landscape is ripe for disruption, and Oxyzo is poised to lead the charge. With a strong foundation and a clear vision, the company is ready to navigate the complexities of the public market.
In conclusion, Oxyzo Financial Services Limited is more than a lending entity. It is a catalyst for change in the Indian SME sector. As it secures funds and eyes a public listing, the company embodies the spirit of innovation and resilience. The future looks bright, and Oxyzo is ready to shine.