Oxyzo Financial Services, the smart financing spinoff of India-headquartered material procurement and financing services provider OfBusiness, secured $200m in series A funding today.
Venture capital firms Norwest Venture Partners and Matrix Partners India co-led the round with alternative asset manager Alpha Wave, investment firm Tiger Global Management and impact investment vehicle Creation Investments.
Founded in 2015, OfBusiness operates an online platform which allows industrial and manufacturing businesses to source raw materials, using artificial intelligence to help them procure suitable supplies at better prices.
Oxyzo was formed within the company, and it allows buyers to access working capital financing to support material purchasing. OfBusiness has retained a stake sized at almost 75% following the transaction, which it said valued Oxyzo at a minimum of $1bn.
Ruchi Kalra, co-founder and chief financial officer of OfBusiness, is running the spinoff as CEO. She said more than 70% of its lending is supplied for companies external to the OfBusiness client list, allowing it to expand its book balance independently.
The series A funding will be allocated to expanding Oxyzo’s range of digital financial services and introduce fixed income products designed for small and medium-sized enterprises. It also plans to grow its debt capital markets and securities-focused products.
