OfBusiness, a B2B commerce and financing platform backed by SoftBank, is moving forward with its initial public offering (IPO) plans after converting to a public limited company in January 2025. The company expects to file its Draft Red Herring Prospectus (DRHP) within the next quarter, aiming to raise between $750 million and $1 billion. This potential offering could imply a valuation ranging from $6 billion to $9 billion, and it is likely to include a mix of fresh issuance and an offer for sale by existing shareholders.
Financially, OfBusiness reported a 21% year-on-year growth in profit after tax (PAT) to $724 crore in FY26, up from $597 crore in the previous fiscal year. Despite a 7% decline in consolidated revenue to $20,645 crore in FY26 from $22,241 crore in FY25, attributed to discontinuing low-return business lines, the company showed significant operational improvements. Its commerce business generated $19,174 crore in revenue, with EBITDA increasing by 39% to $769 crore from $575 crore, and EBITDA margin expanding to 4% from 2.6%. The company also achieved positive free cash flow to firm (FCFF) for the first time, reaching $390 crore.
The company's financing arm, Oxyzo Financial Services, grew its asset base by 28% to $11,800 crore in FY26, reporting a return on assets of 3.8% and maintaining a low gross non-performing asset (GNPA) ratio of 0.75%. OfBusiness is in discussions with major banks like Bank of America, Citi, JP Morgan, and Morgan Stanley to manage the offering, with plans to list on Indian bourses in the second half of 2025. The strong financial performance and improved cash generation, including operating cash flow from its commerce business rising to $1,302 crore, are key factors in the revived IPO discussions.
