OfBusiness Eyes $800M IPO Amid India's Market Rebound

OfBusiness, a prominent Indian B2B e-commerce facilitator, is reportedly gearing up for a significant return to public markets, targeting an ambitious $800 million funding round. This strategic move signals renewed optimism in India's capital markets and positions the company for a substantial valuation, potentially in the $5-6 billion range upon its listing. The company aims to submit its Draft Red Herring Prospectus (DRHP) by mid-November 2026, indicating a well-defined timeline for its public offering.

The proposed offering is structured to include a primary issuance of approximately $260 million in new capital, complemented by a secondary component where existing shareholders will divest a portion of their stakes. This dual approach aims to inject fresh capital for growth initiatives while providing liquidity to early backers. The company's operational model, which involves procuring industrial commodities like metals, chemicals, and agricultural products in bulk and distributing them to small and medium-sized enterprises (SMEs) in smaller lots, has proven resilient.

Further bolstering its value proposition, OfBusiness's integrated fintech arm, Oxyzo, plays a crucial role by extending collateral-free financing solutions to its SME clientele. This synergistic approach addresses a critical need for working capital within the SME segment, a vital engine of the Indian economy. The company's financial performance in fiscal year 2026 underscores its robust operational health, with net profit climbing 21% year-over-year to ₹724 crore and EBITDA surging 34% to ₹769 crore. Notably, EBITDA margins saw a significant improvement, expanding to 4% from 2.6% in the preceding year, while revenue held steady at ₹20,645 crore.

This revived IPO ambition follows a previous attempt that was postponed in 2025 due to unfavorable market conditions. At that time, the company was exploring a capital raise between $750 million and $1 billion, with a valuation target between $6-9 billion. The current plan reflects a more measured approach to valuation, aligning with prevailing market sentiment.

The journey to this point has been supported by a strong roster of sophisticated investors. OfBusiness has previously secured approximately $900 million from a distinguished group including SoftBank Group, Tiger Global, Z47, Alpha Wave Global, Norwest Venture Partners, and Falcon Edge Capital. These firms have demonstrated sustained confidence in the company's disruptive B2B e-commerce and embedded finance strategy.

The selection of prominent investment banks such as Axis Capital, Morgan Stanley, JPMorgan Chase, and Citigroup as advisors for the IPO further highlights the scale and seriousness of the undertaking. Their expertise will be critical in navigating the complexities of the public offering process and ensuring optimal market reception. The successful execution of this IPO would represent a significant validation for India's burgeoning tech ecosystem, particularly for platforms effectively serving the underserved SME sector.