ETtechOfBusiness, a business-to-business (B2B) commerce startup, said it has raised $325 million from Alpha Wave Global (formerly Falcon Edge Capital), Tiger Global and SoftBank Vision Fund 2.
After this new round, OfBusiness said its valuation has jumped to nearly $5 billion. Alpha Wave Global invested around $175 million in this round while Tiger Global and SoftBank put in $100 million and $50 million, respectively.
In a secondary share sale, existing investors sell shares and the money doesn’t go to company coffers.
This is the fourth major funding round for the B2B ecommerce startup in 2021. In July, it raised $160 million led by SoftBank when it entered the unicorn club. In September, it closed another $207 million in funding led by New York-based Tiger Global at a post-money valuation of $3 billion. Prior to that, in April, OfBusiness had closed a $110 million funding round and was valued at $800 million at the time.
OfBusiness cofounder and CEO Asish Mohapatra said the startup will use the new capital to penetrate deeper into supply chain on the commerce side and also build technology for its software-as-a-service (SaaS) solutions and financing vertical. Mohapatra added that he is also aiming for an initial public offering of the company here in the next 9-12 months.
Besides its core commerce business in the B2B raw material supply chain space, it has a lending vertical through its own non-banking financing company and a SaaS business. The lending vertical, Oxyzo, is the second largest business vertical for the company which has a loan book of around $280 million. The SaaS vertical helps SMEs with online procurement of various tenders in the manufacturing and infrastructure sectors – both Indian and global.
In a statement, OfBusiness said it is well on its way to grow its revenue by fourfold year-on-year in commerce. OfBusiness has been profitable for the last four years with technology being at the heart of acquisition, servicing and efficiency, the company added.
“OfBusiness is well on its way to create a B2B ecosystem that marries large scale with profitability, health and engagement. Our march in the last three years across all our three businesses (B2B commerce marketplace, financing and SAAS) has been rapid but there is still a long way to go given the depth and unorganised fragmented market structure of B2B in India,” Mohapatra said.
After this new round, OfBusiness said its valuation has jumped to nearly $5 billion. Alpha Wave Global invested around $175 million in this round while Tiger Global and SoftBank put in $100 million and $50 million, respectively.
This round also includes a secondary share sale of around $140 million whereby existing investors Matrix Partners India, Creation Investments and Zodius Technologies sold part of their shares. Around 80 ESOP (employee stock option plan) holders also participated in the secondary transaction.
In a secondary share sale, existing investors sell shares and the money doesn’t go to company coffers.
This is the fourth major funding round for the B2B ecommerce startup in 2021. In July, it raised $160 million led by SoftBank when it entered the unicorn club. In September, it closed another $207 million in funding led by New York-based Tiger Global at a post-money valuation of $3 billion. Prior to that, in April, OfBusiness had closed a $110 million funding round and was valued at $800 million at the time.
OfBusiness cofounder and CEO Asish Mohapatra said the startup will use the new capital to penetrate deeper into supply chain on the commerce side and also build technology for its software-as-a-service (SaaS) solutions and financing vertical. Mohapatra added that he is also aiming for an initial public offering of the company here in the next 9-12 months.
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Besides its core commerce business in the B2B raw material supply chain space, it has a lending vertical through its own non-banking financing company and a SaaS business. The lending vertical, Oxyzo, is the second largest business vertical for the company which has a loan book of around $280 million. The SaaS vertical helps SMEs with online procurement of various tenders in the manufacturing and infrastructure sectors – both Indian and global.
In a statement, OfBusiness said it is well on its way to grow its revenue by fourfold year-on-year in commerce. OfBusiness has been profitable for the last four years with technology being at the heart of acquisition, servicing and efficiency, the company added.
“OfBusiness is well on its way to create a B2B ecosystem that marries large scale with profitability, health and engagement. Our march in the last three years across all our three businesses (B2B commerce marketplace, financing and SAAS) has been rapid but there is still a long way to go given the depth and unorganised fragmented market structure of B2B in India,” Mohapatra said.
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