IPO

OfBusiness goes Public Ahead of IPO

Ashish Mukherjee, co-founder of Business of Business, poses confidently in a professional setting, showcasing leadership.
By
ES
2 min read

Industrial goods and services procurement platform OfBusiness has officially converted from a private limited company to a public limited company, renaming itself from "OFB Tech Private Limited" to "OFB Tech Limited." This strategic move aligns with the company's preparations for an initial public offering (IPO) slated for 2025.

Key Developments:

  • IPO Ambitions: OfBusiness aims to raise up to $1 billion through its IPO, comprising both primary issuance and an offer for sale (OFS). The company is in discussions with major financial institutions, including Bank of America, Citi, JP Morgan, and Morgan Stanley, to manage the offering.
  • Financial Performance: In the fiscal year ending March 2024, OfBusiness reported a 25.8% year-on-year increase in revenue, reaching ₹19,296 crore, up from ₹15,343 crore in FY23. Net profits also saw a 30.2% growth, totaling ₹603 crore for the same period.
  • Funding and Valuation: To date, the company has secured over $650 million in funding, including a $325 million round led by Alpha Wave, Tiger Global, and SoftBank, which valued OfBusiness at $5 billion. Alpha Wave holds a 19.16% stake, making it the largest external stakeholder, followed by Creation Investment and Matrix Partners.
  • Founding Team: Established by Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar, and Nitin Jain, OfBusiness specializes in supplying raw materials across various sectors, including steel, non-ferrous metals, petrochemicals, polymers, industrial chemicals, agricultural products, and building materials.

Our Opinion on the News:

OfBusiness's transition to a public limited company marks a significant milestone in its journey toward a public listing. This move not only aligns with regulatory requirements but also enhances the company's transparency and governance standards, which are crucial for investor confidence. The impressive financial growth underscores OfBusiness's robust business model and its pivotal role in streamlining procurement processes across industries. As the company advances toward its IPO, its strategic initiatives and solid financial foundation position it favorably in the competitive B2B e-commerce landscape.