Oxyzo Financial Services, a Gurugram-based technology-enabled smart finance solution provider, announced today that it has raised $200 million in a Series A fundraising round at a $1 billion valuation, making it the country’s latest unicorn business.
Alpha Wave led the fresh financing round, which was also joined by Tiger Global, Norwest Venture Partners, Matrix Partners, and Creation Investments.
It’s worth noting that this is Oxyzo’s first external capital round, as the company began as OfBusiness Group’s financing platform before being spun off into its own company.
Oxyzo was founded in 2016 by Asish Mohapatra and Ruchi Kalra as a financing platform to provide cash flow matching working capital loans for SMEs in traditional areas of the economy like manufacturing and subcontracting to acquire raw materials.
With a varied product suite and a broader customer base that included SMEs, mid-corporates, and the new age economy, the business later extended to value chains beyond OfBusiness’ B2B raw material platform.
With this, the company has built a digital supply chain and embedded finance marketplace that intends to answer for the under-penetrated formal credit in the B2B business, based on its robust supply chain data warehouse and its cumulative disbursements of $2 billion+ over 30,000+ nodes.
With this round of funding, Ozyzo plans to expand its broader digital financial services play organically and inorganically across a strong own balance sheet play, scaling the supply chain marketplace, and launching innovative fixed income products for the SME space. It will also focus on scaling other fee incomes business lines including debt capital markets and securities.
Speaking on the development, Ruchi Kalra, Co-founder & CEO, 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.”
Speaking on the investment, Navroz D Udwadia, Co-founder and Partner at Alpha Wave Global, said: “We’ve been fortunate to be their partners for a while, and have seen an impressive scale-up with best-in-class risk management despite strong headwinds from Covid. We look forward to helping build a high-single-digit RoA business that compounds over a long runway.”
