Oxyzo Financial Services Snags Largest Indian Startup Series A at $200M

Oxyzo Financial Services, the lending division of New Delhi-based business-to-business (B2B) commerce startup OfBusiness, raised $200 million in the largest Series A funding round for an Indian startup, according to a report in The Economic Times Wednesday (March 23).

Oxyzo became a unicorn in the process, or a private company with a valuation of $1 billion. Alpha Wave Global and Tiger Global led the fundraising effort, with participation from Norwest Venture Partners, Matrix Partners and Creation Investments.

OfBusiness was valued at almost $5 billion in December last year after a $325 million injection of fresh capital, before making Oxyzo its own entity and allowing it to raise its own capital. All of OfBusiness’ investors besides SoftBank have also given capital to Oxyzo.

Oxyzo chief executive Ruchi Kalra and fellow OfBusiness co-founder Vasant Sridhar will focus on Oxyzo, according to the report.

“We have operated Oxyzo as a separate unit as part of the OfBusiness group with its own team, and now the business has reached a point where it could raise capital on its own. For example, 70% of lending from Oxyzo is outside the OfBusiness suppliers,” Kalra said.

OfBusiness, which has about 600 employees, owns 70-80% in Oxyzo after the latest investment round.

Related: Ofbusiness B2B Platform Reaches $3B Valuation

Ofbusiness reached a $3 billion valuation after closing a $200 million Series F funding round in September.

Earlier this year, Ofbusiness was valued at more than $800 million after it closed a $97 million funding round that was led by Falcon Edge Capital. Falcon Edge and fellow existing investor SoftBank Vision Fund II, which had contributed $160 million in a previous round, were also part of the Series F funding round.

Ofbusiness provides raw material sourcing services to the manufacturing industry and hands out credit to the businesses through its non-banking financial company (NBFC) arm.