B2B unicorn OfBusiness clocks 2.14x rise in revenue in FY23; profits surge 2.3x

B2B unicorn Ofbusiness's revenue more than doubled and profits grew 2.3X in the 2022-23 financial year.

According to its consolidated financial statements filed with the Registrar of Companies, the company's profits surged to Rs 463 crore, compared to Rs 201 crore in FY22, while its revenue from operations grew 2.14X to Rs 15,342 crore in FY23, from Rs 7,140 crore in FY22.

The growth in profits was driven by its huge scale and good control on overheads, according to media reports.

Launched in 2016, by Ashish Mohapatra, Vasant Sridhar, Ruchi Kalra, Bhuvan Gupta, Nitin Jain, Ofbusiness is a tech-enabled platform that helps companies procure raw material and credit for small businesses. It last raised $325 million in a Series G round in December 2021 and has collectively raised $900 million across 11 rounds till date.

Primarily focused on the B2B channel, Ofbusiness supplies raw materials such as steel, petrochemicals, and agri products to companies across different supply chains. In March this year, the company launched an app to help medium, small, and microbusinesses procure raw materials and get access to credit.

Ofbusiness saw its cost of procurement of raw material surge to Rs 13,868 crore, from Rs 6,000 crore last year. The company's total expenses for FY23 were Rs 15,037 crore (Rs 6611 crore in FY22).

Ofbusiness's subsidiary—Oxyzo—registered a revenue of Rs 570 crore during FY23 (Rs 319 crore in FY22).

The company's net positive results come at a time when its rival Zetwerk raised $120 million at a flat valuation. Its other rival Infra.Market is yet to post its FY23 results.

(The copy was updated with information on the company's business model and funding.)