OfBusiness receives $29m in Series C to support rapid growth

India-based OfBusiness has received Rs 200 Crore ($29m) in a Series C round led by Creation Investments and Falcon Edge.

Existing backers also taking part in funding included Matrix Partners India and Zodius Capital. The company has also raised undisclosed debt lines from Kotak, Tata Capital, RBL Bank and Northern Arc and other lending partners.

The company, which was founded in 2015, offers 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.

Loans can be taken out with no pre-payment charges or collateral, with credit lines of up to 2 crores ($290,000) available.

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.

Over the past year, OfBusiness’ AuM has growth 10-times, and this new funding will be used to support this rapid growth, and scale its model.

Creation Investments director Tyler Day said, “We are thrilled to partner with the OfBusiness team for the Company’s next stage of growth. OfBusiness has built an impressive suite of financing solutions tailor made for the needs of SMEs in the manufacturing and infrastructure sectors, segments largely underserved by banks and traditional NBFCs.”

Following this series, the company has raised a total of 500 crore ($72m). Last year, the company closed a $3.8m debt financing facility from Kotak Mahindra Bank, and a $11.1m Series B from investors including Zodius.

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