OfBusiness, a prominent B2B e-commerce platform in India supported by SoftBank, is gearing up for a major initial public offering (IPO) projected to raise between $750 million and $1 billion. This strategic move, set for the second half of 2025, aims to bolster the company’s growth and streamline its operations.
IPO Details and Strategic Plans
The upcoming IPO will consist of new shares valued at $200 million, with the remainder offered by existing shareholders to new investors. The company is currently negotiating with major investment banks including Bank of America, Citi, JP Morgan, and Morgan Stanley to facilitate the offering. The IPO proceeds are earmarked for debt repayment and business expansion, according to Bhavesh Keswani, CFO of OfBusiness.
The company is targeting a valuation between $6 billion and $9 billion. Although Keswani did not confirm the exact valuation, it reflects a substantial increase from the company’s last funding round in 2021, which valued it at approximately $5 billion. OfBusiness, founded in 2015 by Asish Mohapatra and Ruchi Kalra, has so far raised over $800 million and boasts significant stakes from major investors like Tiger Global and SoftBank Group.
Business Operations and Market Context
OfBusiness operates a comprehensive online platform that provides a range of products including polymers, agricultural goods such as pulses, and industrial steel. The company is also in the process of merging some of its subsidiaries to enhance operational efficiency before the IPO.
The planned IPO comes at a time of robust performance in the Indian stock market, which has seen a 16% increase this year, the highest among major Asian markets. This positive market trend is expected to benefit OfBusiness’s public listing.
A Growing E-Commerce Powerhouse
OfBusiness’s IPO is anticipated to draw significant interest, reflecting the company’s growing prominence in the B2B e-commerce space and its potential for future growth. The IPO is expected to not only strengthen OfBusiness’s financial position but also contribute to the broader growth of India’s e-commerce sector.
Have Your Say
Do you think OfBusiness’s upcoming IPO will solidify its position as a leading player in the B2B e-commerce market? How do you view its potential impact on the Indian stock market? Share your thoughts in the comments below!
