Matrix-Backed Oxyzo Financial Services Raises $200 Million Series A

Oxyzo started as OfBusiness Group’s financing platform that provided cash flow matched working capital financing for buying raw materials for SMEs in the traditional sector

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Oxyzo Financial Services, a tech-enabled smart financing solution provider, announced its $200M Series A raise led by Alpha Wave and co-led by Matrix Partners India, Tiger Global, Norwest Venture Partners and Creation Investments.

Oxyzo started as OfBusiness Group’s financing platform that provided cash flow matched working capital financing for buying raw materials for SMEs in the traditional sectors of the economy as manufacturing and sub-contracting. In the next phase of its growth, Oxyzo expanded to value chains beyond OfBusiness’ B2B raw material platform with a diversified product suite and a broader customer base to include SMEs, mid-corporates, as well as the new age economy. 

As commented by Asish Mohapatra, OfBusiness Group CEO, “Oxyzo, has inherited the highest standards of Corporate Governance and Compliances from its parent OfBusiness, which has been instrumental in both entities becoming earliest to be rated A+ (by ICRA), in their respective categories. Both OfBusiness and Oxyzo have a strong borrowing profile enjoying confidence across 50+ financial institutions. The company believes that the growth of fresh talent coupled with the right risk experience and architecture has been at the heart of innovation and execution.”

Commenting on the raise, Ruchi Kalra, Co-founder and CEO Oxyzo said, “With the emergence of the digital economy, we see a marked shift in the emerging needs and servicing approach in the B2B segment. We want to be at the forefront of this as a diversified financial services company, differentiated through its innovative financial products and digital platforms on the back of strong credit and origination capabilities. We are very excited about our next phase of growth as we further embed ourselves digitally into the SME, mid-corporate and the new age supply chains.”

Commenting on the fundraise, Vikram Vaidyanathan, Managing Director, Matrix India said, “We've been fortunate to have a ringside seat to this journey with OfBusiness and Oxyzo from day zero. Oxyzo's excellent execution coupled with a strong focus on asset quality sets it apart in the fintech landscape. We believe the management team is just getting started on their path to creating an IPO-ready institution and are excited to renew our partnership.”

Commenting on the raise, Navroz D. Udwadia, Co-founder and Partner at Alpha Wave Global, said, “We are pleased to back Ruchi, Vasant and team as they scale Oxyzo to become India’s leading platform focused on SME supply chain financing and structured products. We’ve been fortunate to be their partners for a while, and have seen an impressive scale-up with best-in-class risk management despite strong headwinds from Covid. We look forward to helping build a high-single-digit RoA business that compounds over a long runway.”

Niren Shah, Managing Director and Head, Norwest Venture Partners India, stated, “We have been delighted with our early investment in Ofbusiness and feel privileged to get an opportunity to partner with them once again, this time co-leading a $200M round to fund Oxyzo, the SME Fintech business. We are impressed with how the Oxyzo team has built a high growth business with robust corporate governance and are even more excited with their vision to build this into India’s most profitable, tech-driven, B2B SME fintech player. We are proud to congratulate Ruchi on becoming the first female founder in India of a profitable, fintech unicorn!”

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