OfBusiness, one of the prominent procurement platforms for industrial goods and services, has become a public limited company. The move is part of the company’s preparations for its much-awaited initial public offering (IPO), which is expected to take place in 2025. As part of this, the company plans to raise up to $1 billion in its IPO, consisting of both primary components and an offer for sale (OFS).

ofbusiness converts

PC: Mint 

Transition to Public Company

The decision to convert from a private entity to a public company was approved by OfBusiness’s board, leading to a name change from “OFB Tech Private Limited” to “OFB Tech Limited.” This transformation is seen as a crucial step in preparing for the upcoming IPO, allowing the company to broaden its capital base and enhance its visibility in the market.

The decision of moving from being a private organization into becoming a company of public will be carried upon approval of board OfBusiness hence renaming to \”OFB Tech Private Limited into OFB Tech Limited\” It is this aspect that prepares one to enter through an IPO-a capital widening the aspect to offer higher and global recognition to be held within itself.

Financial Performance and Growth

Founded in 2015 by Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Vasant Sridhar, and Nitin Jain, OfBusiness is one of the largest procurement players in raw materials for sectors like steel, petrochemicals, and agri-products. It has already raised more than $650 million in funding so far, taking its valuation to $5 billion during its last round of funding.

For the fiscal year ending March 2024, OfBusiness notched up a commendable 25.8% year-on-year revenue growth to Rs 19,296 crore from Rs 15,343 crore recorded in FY23. The company also clocked a 30.2% profit growth at Rs 603 crore during the same period. Buoyed by this financial performance, OfBusiness is better placed for its IPO.

Competitive Landscape

OfBusiness is in a competitive space, where its competitors are Zetwerk, Infra.Market, and Moglix. While the latter reported revenues growing significantly, so did those of its peers, with Infra.Market and Moglix having gross revenues of Rs 14,530 crore and Rs 4,964 crore for the last fiscal year.

Strategic Partnerships and Future Plans

As part of its IPO preparation, OfBusiness is said to be holding discussions with several leading investment banks – Bank of America, Citi, JP Morgan, and Morgan Stanley – for merchant banking on the offering. In another development, SoftBank is reportedly planning to facilitate a $100 mn partial exit for early investors Alpha Wave and Z47, formerly Matrix Partners India, before the IPO.

The transition to a public company is expected to provide OfBusiness with greater access to capital markets, making it possible for the company to scale its operations and invest in technology and infrastructure to enhance its service offerings. The company’s focus on building its product portfolio and gaining access to new markets will be critical as it moves forward with its work to maintain its competitive position in a fast-evolving procurement landscape.

Thus, in the overall context, conversion of OfBusiness into a public company marks the first significant step towards an IPO in 2025. Having demonstrated solid financial performance and having a robust growth trajectory in place, the company is ready to leverage opportunities within the industrial procurement sector.