OfBusiness, a Guragon, India-based SME financing platform, has raised $3.8m in debt financing from Kotak Mahindra Bank.
The company, which was founded in 2015 , provides financing to small and medium enterprises. It provides a single-window for SMEs in manufacturing and infrastructure sectors to get secured and unsecured credit lines as an alternate to financing by local distributors and financiers, which is at a much higher cost.
OfBuiness claims the SMEs can use this limit for cost-effective procurement of raw material including industrial steel (structures, plates, and coils), TMT, electrical goods, cement, RMC, Bulk polymers, chemicals, building materials and solar installations. The platform aggregates these materials and passes the aggregation benefits to the SMEs.
In early 2016, it raised Series A funding of $5m from Matrix Partners and a host of angel investors. It secured $11.1m in a Series B round from Zodius Technology Opportunities Fund and existing investors.
OfBuiness is currently in the process of raising $25 to $30m (Rs 160-195 crore), as part of its Series C round according to various media reports.
A number of SME lending startups have raised funding this year. Earlier this month, Kabbage was reported to in the process of raising $161m according to a filing with the Securities and Exchange Commission. The filing comes two months after Kabbage announced?a $250m investment from Softbank Group.
Earlier in the year South-East Asia-focused First Circle bought in $1.3m in a new round from Accion Venture Lab and Deep Blue Ventures. While at the start of 2017, Loan Frame picked up $2.25m in a seed round led by Vedanta Capital. The round also saw participation form former Chase Card Services chairman William Campbell, MIO partners co-CEO Toos N Daruvala and McKinsey Investment Office.
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