OfBusiness an online marketplace for construction materials and financing for small and medium enterprises plans to raise secondary fundraising ahead of its potential IPO (Initial Public Offering) next year, giving some of its existing investors an exit valuation of $8-9 billion. OfBusiness I backed by Softbank
OfBusiness is raising $50-$100 million from a slew of family offices, who will buy shares from some of the business-to-business (B2B) commerce and lending platform's investors, people aware of the matter told Moneycontrol.
In secondary fundraises, shares of companies are exchanged among investors. Existing shareholders typically sell their shares to new or other existing investors, resulting in a partial or total exit from the company. In contrast to primary fundraises, secondary share sales do not generate any funds for the company. It also does not issue new stock.
The new investors will come in at a valuation of $8 billion to $9 billion, a nearly 80 per cent increase from the company's current valuation of $5 billion, and would serve as a benchmark for the company as it prepares to go public within the next year, the sources added.
OfBusiness has been considering an IPO since December 2021, when it raised $325 million from existing investors Alpha Wave Global, Tiger Global Management, and SoftBank, increasing its valuation to $5 billion from $1.7 billion.