B2B commerce firm OfBusiness plan IPO next year, DRHP likely in Nov

The IPO is expected to be based on the company's existing valuation of $4.4-5 billion, with the issue targeted for March-April next year

This report has been revised to correct an error in the previous version 

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OfBusiness, an Indian business-to-business (B2B) commerce and financing platform that helps small and medium enterprises (SMEs)  in running their business, is planning to raise $600-800 million through an initial public offering (IPO), according to merchant bankers aware of the development.

 

The country’s leading B2B commerce and financing platform, which reported revenues of ₹20,000 crore in 2025-26 (FY26), will raise 30 per cent through a fresh issue of shares and 70 per cent through an offer for sale (OFS).

 

The IPO is expected to be priced at the company’s existing valuation of $4.4-5 billion. The company is preparing to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India by November, with the IPO slated for March or April next year.

 

 

The Gurugram-headquartered, profitable startup, which provides a platform for the business requirements of SMEs, has appointed Morgan Stanley, JPMorgan, Citibank, and Axis Capital as merchant bankers for the issue. A query to OfBusiness on the proposed IPO did not elicit a response.

 

The startup was founded nearly 10 years ago by Indian School of Business alumni Asish Mohapatra and his wife, Ruchi Kalra, along with two other partners.

 

The company has four B2B commerce verticals, including metals, apparel, chemicals and food processing. The platform links suppliers, who are SMEs, on one side with buyers, comprising SMEs with revenues ranging from ₹50 crore to ₹500 crore, as well as large global and Indian companies.

 

The company also supports the platform by undertaking its own manufacturing in these verticals, where it sells its own private-label products to buyers, mostly in apparel and metals. The company has already invested more than ₹3,000 crore in acquiring, building from scratch or expanding more than 17 wholly owned manufacturing and packaging subsidiaries. It is in the process of merging these subsidiaries into OfBusiness, which is expected to be completed soon. However, its financing business, which offers credit to SMEs and in which OfBusiness has a 70 per cent stake, will remain a separate entity.

 

According to details available in company documents, OfBusiness has raised a total of ₹5,000 crore from marquee investors across various funding rounds, including SoftBank Vision Fund, Tiger Global, Alpha Wave Global, and Matrix Partners, among others. According to its projections, the company is aiming to touch revenues of Rs 23,520 crore in 2026-27 (FY27), after growing at a compound annual growth rate of 13 per cent over the past five years.

 

The startup, which has been profitable since 2017-18, posted a profit before tax (PBT) of ₹780 crore in FY26 and has projected this to increase to Rs 606 crore in FY27. It had an operating cash flow of ₹1,220 crore in FY26, which is projected to rise to ₹1,302 crore, while its free cash flow after investments is projected to touch ₹278 crore in FY27.

 

Across its verticals, the company manufactures, processes, and packages an average of 40 per cent of its products in its own factories. The share is much higher in some verticals, at 80 per cent in apparel and 70 per cent in food processing, for instance.

 

The company, for instance, procures orders for garments, handbags, footwear, and belts from global majors such as Uniqlo, H&M, Ikea, Zara, Adidas, and Michael Kors and assembles the final products in its factories while using the micro SME supply chain for fabric, yarn, buttons, trims, threads, and other inputs.

 

OfBusiness gets IPO machinery in place

 

• 30% fresh issue, 70% OFS: Most of the proposed issue to be an exit for existing investors
• Morgan Stanley, JPMorgan, Citi, and Axis Capital appointed as merchant bankers
• November DRHP in the works; listing targeted for March-April
• Profitable since FY18, with ₹780 crore PBT in FY26
• ₹20,000 crore FY26 revenue, projected to reach ₹23,520 crore in FY27