OfBusiness Raises Rs 75 Cr from Kotak Mahindra Bank
Funds to be leveraged for expansion and for deepening its presence in the country’s MSME sector
Working towards the redundancies experienced by SMEs in core sectors such as manufacturing and infrastructure, OfBusiness, a unique SME financing and product fulfilment platform, has secured additional debt funding worth INR 25 crore from Kotak Mahindra Bank. This debt comes as an extension to the existing INR 50 crore working capital limit the Company has with the Bank. OfBusiness aims to leverage the funds to further expand clusters and deepen its reach to encompass a larger number of MSMEs operating in the country who are underserved by the current banking system.
Commenting on the sidelines of the announcement, Asish Mohapatra, Co-founder and CEO, OfBusiness said, “At OfBusiness, we aspire to be SME’s growth partner by adding value to the SME’s life beyond financing. When it comes to getting secured and unsecured credit or cost-effective raw material procurement, SMEs are fully dependent on informal channels and local distributors. With an NBFC license and right cost of capital through our debt lines, we are bundling innovative lending and procurement solutions to address growing needs of SMEs in the country.”
Combining financing and fulfilment, two very different operating models, is done by OfBusiness seamlessly through in-house technology. Underwriting of loans by OfBusiness is done by not only evaluating the financial data, but also several other alternate data sources of SME operations, which are contributed by the SME community of buyers and sellers. At present, OfBusiness has built a strong base across the key industries including Manufacturing (auto, power, engineering, capital goods, solar) and infrastructure with monthly disbursals worth INR 50+ Cr with an NPA of less than 1% and line of sight to profitability from the next fiscal year.
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