Oxyzo Financial Services, a financing solution provider, has raised $200 million Series A from Alpha Wave and Tiger Global, along with the participation of Norwest Venture Partners, Matrix Partners and Creation Investments. The round has valued the company at $1 billion.

This is the largest Series A round raised by an Indian company ever. 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 such as manufacturing and sub-contracting. 

Next growth phase

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. 

The company reported a cumulative disbursement of over $2 billion across 30,000+ nodes to build a digital supply chain and embedded finance marketplace that aims to solve for the under-penetrated formal credit in the B2B economy. 

Oxyzo said it has grown its assets under management (AUM) of $350 million with a 100 per cent y-o-y growth while maintaining its GNPA (gross non-performing assets) at 1.2 per cent even through the covid period.

Further, Oxyzo’s recently launched fixed income and securities business line is said to have achieved a cumulative market volume of over $1.6 billion in the last six months. Oxyzo said it has been profitable since inception and is currently at over 5.5 per cent pre-tax ROA.

‘High corporate governance standards’

Asish Mohapatra, OfBusiness Group CEO, said, “Oxyzo has inherited the 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.”

Adding to this, Ruchi Kalra, co-founder and CEO of Oxyzo, said, “With the 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.”

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.

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