SoftBank-backed business-to-business (B2B) commerce and credit platform OfBusiness is advancing plans to execute a domestic public listing early next year, with the company aiming to submit its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) by mid-November 2026.
The public offer, managed by a consortium of investment banks including Axis Capital, JPMorgan Chase & Co., and Morgan Stanley, is designed to raise up to $800 million.
According to people familiar with the matter, the company is targeting a formal market debut on the BSE and NSE during the March–April 2027 quarter. The transaction is expected to be anchored around its current private valuation baseline of $4.4 billion to $5.0 billion, allowing the company to balance balance-sheet expansion against current market appetite.
Anatomy of the Offering: Fresh Issue vs. Offer for Sale
The proposed capital-raising structure is designed to strengthen corporate liquidity while offering liquidity to early venture capital backers:
[ PROPOSED OFBUSINESS $800M IPO ARCHITECTURE ]
FRESH CAPITAL ISSUE OFFER FOR SALE (OFS)
(Up to $260 Million / ~₹2,100 Cr) (Up to $540 Million / ~₹4,600 Cr)
┌───────────────────────────────┐ ┌───────────────────────────────┐
│ • Working capital expansion │ │ • Secondary liquidity for │
│ • Supply-chain warehousing │ ───────────► │ early institutional angels, │
│ • Tech & logistics integration│ │ Tiger Global, SoftBank, │
│ • NBFC subsidiary equity base │ │ and Z47 (Matrix India). │
└───────────────────────────────┘ └───────────────────────────────┘
│ │
▼ ▼
[ GROWTH CAPITAL ] [ INVESTOR RETURNS ]
Funds expansion of raw-material Provides partial harvest
procurement lines into MSMEs after multi-year holding cycles
+─────────────────────────────────+──────────────────────────────────────────────────────────+
| Offering Parameter | Proposed Specification (November 2026 DRHP Filing) |
+─────────────────────────────────+──────────────────────────────────────────────────────────+
| Parent Corporate Entity | OFB Tech Private Limited |
| Operating Brand | OfBusiness |
| Primary Investment Bankers | Axis Capital, JPMorgan, Morgan Stanley, Citigroup |
| Target DRHP Filing Date | Mid-November 2026 |
| Public Listing Target Window | March–April 2027 |
| Total Issue Quantum | Up to $800 Million (approx. ₹6,700 Crore) |
| Fresh Issue Tranche | Up to $260 Million (approx. ₹2,100 Crore) |
| Offer for Sale (OFS) Tranche | Balance up to $540 Million (approx. ₹4,600 Crore) |
| Indicative Valuation Band | $4.4 Billion to $5.0 Billion |
| Total Lifetime Equity Raised | ~$900 Million |
+─────────────────────────────────+──────────────────────────────────────────────────────────+
The Dual-Engine Model: B2B Commerce Meets Captive Credit
Founded in 2015 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain, OfBusiness built a distinct moat within India’s fragmented supply-chain ecosystem by combining commerce and credit:
[ THE OFBUSINESS ECOSYSTEM ENGINE ]
1. Raw Material Sourcing (Commerce Engine)
┌─────────────────────────┐
│ Bulk Purchasing Power │ ──► Procures steel, polymers, chemicals, agri-commodities,
│ Across Core Verticals │ and building materials directly from primary producers.
└─────────────────────────┘
│
▼
2. Institutional Credit Backbone (Fintech Engine)
┌─────────────────────────┐
│ Oxyzo Financial Services│ ──► Underwrites secured working capital loans to SME buyers,
│ (Wholly Owned NBFC) │ tying financing directly to material purchases.
└─────────────────────────┘
│
▼
3. Closed-Loop Cash Cycles
┌─────────────────────────┐
│ High Retention & Low NPA│ ──► Material deliveries match invoice financing, minimizing
│ Across MSME Supply Chain│ default risks and generating dual gross profit margins.
└─────────────────────────┘
1. High-Volume Industrial Commerce
The platform acts as a procurement partner for manufacturing and infrastructure small-to-medium enterprises (SMEs). By aggregating purchasing demand across fragmented buyers, OfBusiness secures bulk discounts from primary industrial producers—including steel plants, petrochemical refineries, and chemical manufacturers—passing on competitive pricing to fabricators, contractors, and builders.
2. Oxyzo Financial Services
Unlike many venture-backed e-commerce firms that outsourced financing to third-party lenders, the founders established Oxyzo Financial Services, an RBI-registered Non-Banking Financial Company (NBFC). Oxyzo operates as an independent credit unicorn, providing short-term, asset-backed working capital financing specifically tailored to the SME’s raw-material procurement lifecycle. This integrated model provides OfBusiness with gross trade margins on commerce alongside steady net interest income on lending books.
Profitability Profile in a Recovering Startup IPO Market
The timing of the November DRHP filing reflects improving conditions in India’s primary capital markets, where domestic institutional investors (DIIs) and retail participants have shown an appetite for profitable, tech-enabled enterprise models.
[ SHIFTING TECH IPO PARADIGM ]
THE 2021 VINTAGE (First-Gen Tech IPOs) THE 2026–2027 HORIZON (OfBusiness Era)
────────────────────────────────────── ──────────────────────────────────────
• High cash-burn consumer tech models. • Enterprise profitability & positive EBITDA.
• Valuations detached from fundamental cash flows. • Valuations priced near private-market par.
• Revenue driven by heavy customer subsidies. • Real B2B manufacturing and supply-chain rails.
While consumer-facing internet platforms have frequently faced margin scrutiny and high customer acquisition costs, OfBusiness has consistently reported positive operational EBITDA and bottom-line profitability. The company has historically maintained positive profit after tax (PAT) across consecutive fiscal cycles, positioning it alongside a select cohort of profitable Indian unicorns preparing for public market debuts.
Key Challenges Ahead of the Public Issue
While the company’s fundamentals are supported by scale and captive lending, investment analysts note several factors to monitor during the roadshow:
- Commodity Price Volatility: Sourcing steel, industrial chemicals, and agricultural staples exposes inventory turnover to global commodity cycles. Rapid drops in raw material prices can squeeze distributor trading margins.
- NBFC Asset Quality Governance: As Oxyzo scales its loan book alongside the commerce business, managing non-performing assets (NPAs) across the MSME sector will remain under regulatory scrutiny, particularly under the Reserve Bank of India’s revised provisioning frameworks.
- Valuation Absorption: Pacing the listing at $4.4–5 billion avoids aggressive pricing, but public market investors will assess the business through a blended multiple—comparing the commerce arm against listed distribution logistics firms and Oxyzo against established commercial NBFCs.
What Happens Next: The IPO Execution Pathway
Ahead of the targeted early 2027 market debut, several operational milestones will guide the process:
- Formal Board Approval & DRHP Filing: The board will formally sign off on the draft prospectus in early November 2026, leading to submission with SEBI.
- Regulatory Review Period: SEBI and stock exchange review of the draft prospectus is expected to run through December 2026 and January 2027.
- Global Anchor Roadshows: Following receipt of SEBI observation clearances, executive management will conduct institutional roadshows in Mumbai, London, Singapore, and New York ahead of the planned March–April 2027 offering.
Frequently Asked Questions
When will OfBusiness file its DRHP for the IPO?
OfBusiness (OFB Tech Private Limited) is scheduled to file its Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI by mid-November 2026.
What is the expected size and valuation of the OfBusiness IPO?
The company is targeting an issue size of up to $800 million (approx. ₹6,700 crore), comprising a fresh issue of up to $260 million and an Offer for Sale (OFS). The issue is expected to be priced around its current private valuation of $4.4 billion to $5.0 billion.
When is the company likely to list on the stock exchanges?
OfBusiness plans to launch its initial public offer and list its equity shares on the BSE and NSE during the March–April 2027 window.
What does OfBusiness do, and who are its founders?
Founded in 2015 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain, OfBusiness operates a B2B commerce platform for raw material procurement (metals, chemicals, polymers, food grains) combined with an integrated financing arm, Oxyzo Financial Services.
Who are the major institutional investors in OfBusiness?
Major investors include SoftBank Vision Fund 2, Tiger Global Management, Norwest Venture Partners, Z47 (formerly Matrix Partners India), Alpha Wave Global, and Creation Investments
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