The industrial goods and services procurement platform OfBusiness is preparing for its initial public offering (IPO) in 2025. This is a big move toward becoming a public company, and now OfBusiness has made it official.
Change of name and status of the company
The board of OfBusiness has agreed to change from a private limited company to a public one. This change also means the name has switched from “OFB Tech Private Limited” to “OFB Tech Limited,” as stated in the required paperwork.
Plans to make $1 billion in IPO
Reports say OfBusiness hopes to raise up to $1 billion from its IPO, which will include new shares (the main part) and a sale of current shares (offer for sale). Right now, it is talking with Bank of America, Citi, JP Morgan, and Morgan Stanley to help with the listing.
SoftBank’s partial sale before IPO
SoftBank is said to want to sell $100 million worth of shares as a partial exit for backers like Alpha Wave and Z47 (which used to be Matrix Partners India) before the IPO takes place.
Business plan and main backers
OfBusiness was started by Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar, and Nitin Jain. The firm provides raw materials for many fields, like steel, petrochemicals, polymers, industrial chemicals, farms, and building supplies.
So far, the company has raised over $650 million, with its biggest round being $325 million, led by Alpha Wave, Tiger Global, and SoftBank, putting the value of OfBusiness at $5 billion. Data from TheKredible shows that Alpha Wave has the largest outside share at 19.16%, with Creation Investment and Matrix Partners next. Other big owners include SoftBank, Norwest, and Tiger Global.
Strong growth in FY24
In the year ending March 2024, OfBusiness showed a 25.8% growth in revenue year on year, reaching Rs 19,296 crore, up from Rs 15,343 crore in FY23. Profits also went up by 30.2% year on year and hit Rs 603 crore.
Competitive fields
OfBusiness faces competition from Zetwerk, Infra. Market, and Moglix. For FY24, Infra. Market and Moglix posted revenues of Rs 14,530 crore and Rs 4,964 crore, respectively. On the other hand, Zetwerk’s FY23 GMV was Rs 11,449 crore, but it has not shared its latest numbers yet.
With its strong growth in finances and innovative plans for the IPO, OfBusiness is set to have a big effect on the stock market next year.
