Tiger Global-backed B2B lending unicorn Oxyzo has nearly tripled its profit after tax (PAT) to Rs 197 crore in FY23 from Rs 69 core in FY22. Over the same period, income surged to Rs 562 crore from Rs 313 crore.

Share Market Live

NSE

The OfBusiness’ sister company, which offers financing solutions to small and medium-sized enterprises (MSMEs), has also nearly doubled its loan book, with total assets under management (AUM) jumping to Rs 5,578 crore in the previous fiscal year. In FY24, the company expects to take its AUM to Rs 8,500 crore.

Oxyzo, along with its holding company OfBusiness, which is an ecommerce platform for procurement of raw materials, are among a handful of unicorns that have been able to hit profitability—a parameter several unicorns are yet to fulfill.

Commenting on the results, Ruchi Kalra, CEO of Oxyzo Financial Services said, “We have diversified our financial services business balancing both growth and profitability.”

“We crossed a loan book of Rs 4800 crore, driven by our strong origination capabilities maintaining a GNPA of less than <1%... We expect to cross a Rs 8,200 crore AUM in FY24, building on our core, scaling our investments and further diversifying through partnerships maintaining a post-tax RoA of >5%,” she added.

Oxyzo is currently fulfilling the credit needs of more than 5,000 MSMEs and works with over 40 lenders, with a majority of its borrowing coming from large public and private sector banks.

The company also recently expanded into micro-enterprise lending through an investment in ZIEL Financial Technologies, which claims to have a network of 75-plus branches across Rajasthan, Uttar Pradesh, Haryana, Uttarakhand and Punjab. The arm focuses on smaller ticket size credit needs and currently has an AUM of about Rs 300 crore.

Given the credit gap faced by SMEs in India, Oxyzo was instituted to give affordable loans to SMEs to help them buy raw materials on or off the OfBusiness' marketplace, which sells a range of products from steel and petrochemicals to food grains.

Last year, Oxyzo closed a $200 million Series A round—one of the largest India has seen—from Alpha Wave, Tiger Global, Norwest Venture Partners, Matrix Partners and Creation Investments. Following this round, the Ruchi Kalra-led company became a unicorn at a valuation of $1 billion.

In what's a first, India's unicorn club will now have a wife-husband duo, each heading a billion-dollar startup independently. A former Mckinsey consultant, Ruchi Kalra holds the distinction of being amongst the few women founders or co-founders in the unicorn club. In 2015, she co-founded OfBusiness with her husband Asish Mohapatra.

Last fiscal, OfBusiness clocked a revenue of over Rs 7,000 cr and net profit of Rs 200 crore. The Asish Mohapatral-led B2B e-commerce platform is expected to announce its FY23 results later in August.