SoftBank-backed OfBusiness, a prominent Indian business-to-business (B2B) platform specializing in raw material supply, has announced its intention to launch an initial public offering (IPO) on the Indian stock market in the latter half of 2025. The company, founded in 2015 by Asish Mohapatra and Ruchi Kalra, is aiming to raise between $750 million and $1 billion through the IPO. The offering will include approximately $200 million in new shares, with the remaining sum coming from existing shareholders selling their stakes to new investors.
OfBusiness is currently in discussions with global investment banks, including Bank of America, Citi, JP Morgan, and Morgan Stanley, to manage the IPO. The company is targeting a valuation between $6 billion and $9 billion, although Chief Financial Officer Bhavesh Keswani did not comment on this target. Industry sources suggest that this valuation goal is influenced by the company’s strong financial performance and the bullish trend in India’s stock market, which has outpaced other Asian markets this year.
The proceeds from the IPO will be used primarily to repay debt and to fund the expansion of OfBusiness’s current operations. The company reported an after-tax profit of $72.6 million on revenue of $2.3 billion for the fiscal year ending in March 2024. Ahead of the IPO, OfBusiness is also in the process of merging some of its subsidiaries to streamline operations and improve efficiency.
Notable investors in OfBusiness include SoftBank Group, Tiger Global, and Alpha Wave Global, which hold significant stakes in the company. OfBusiness has raised over $800 million in funding to date, with its last funding round in 2021 valuing the company at around $5 billion.
The planned IPO comes amid a robust performance by India’s stock market and follows recent listings by other SoftBank-backed companies, including Ola Electric. Hyundai Motor is also preparing for a $3 billion IPO in India later this year.
Summary:
- IPO Details: OfBusiness plans to raise $750 million to $1 billion in an IPO by late 2025.
- Use of Funds: The proceeds will be directed towards debt repayment and business expansion.
- Market Position: OfBusiness is targeting a valuation of up to $9 billion amidst strong market conditions.