Oxyzo raises Rs 100 Cr via secured NCDs as it eyes future public listing
Oxyzo provides customized financial solutions, including cash flow-based lending products and supply chain financing, to small and medium enterprises (SMEs) in India.
Oxyzo Financial Services Limited, the lending arm of the OfBusiness group, has raised Rs 100 crore through the issuance of non-convertible debentures (NCDs), according to a regulatory filing.
The allotment, made on February 18, 2025, saw merchant banker AK Capital Finance Limited emerge as a key investor, subscribing to 1,00,000 debentures, each priced at Rs 10,000.
The bonds carry an annual coupon rate of 9.75% and are set to mature in 24 months, on February 18, 2027. The debt issuance is secured by collateral equivalent to 110% of the outstanding principal.
Oxyzo, originally incorporated as a private entity before transitioning into a public limited company, has been a significant player in structured credit, offering supply chain financing solutions to businesses.
Its parent company, OfBusiness, a SoftBank-backed B2B marketplace for construction materials and SME financing, is in early discussions with investment bankers, including Kotak Investment Banking, for a potential $500 million IPO by August next year, YourStory had reported earlier.
The listing will include both primary and secondary share offerings. Oxyzo Financial Services, with over 70% ownership by OfBusiness, is also expected to go public but at a later stage.
OfBusiness, founded in 2015, has been one of India's most profitable unicorns, reporting a net profit of Rs 463.3 crore in FY23, more than doubling from FY22.
The company's revenue also doubled to Rs 15,300 crore. Oxyzo, which became a unicorn in 2022, reported nearly Rs 200 crore in profit on Rs 570 crore revenue in FY23.
Edited by Jyoti Narayan