In a major development in India’s fintech lending space, Oxyzo Financial Services, the lending arm of B2B commerce unicorn OfBusiness, has raised INR 533 Cr (~USD 62.4 million) through the issuance of non-convertible debentures (NCDs). The debt funding round was led by Neo Group, with participation from several other institutional investors.
According to the regulatory filings, Oxyzo issued 53,300 NCDs at INR 10 lakh each between March and April 2025. The funds will be used for day to day business operations and credit disbursement to SMEs — a segment Oxyzo has been focused on since its inception.
Oxyzo Investors and Breakup
Neo Group invested the largest amount — INR 200 Cr — through its alternative asset management and wealth management arms including Neo Asset Management, Neo Wealth Partners, and its AIFs: Neo Income Plus Fund and Neo Special Credit Opportunities Fund.
Other investors in the round:
- Aditya Birla Sun Life AMC – INR 100 Cr
- Hinduja Leyland Finance – INR 75 Cr
- Northern Arc Capital – INR 50 Cr
- Rest of the amount was raised from Dezerv Securities, Nuvama Wealth and others.
This is the second tranche of funding for Oxyzo this year. In February 2025, Oxyzo had raised an additional INR 100 Cr via secured NCDs from AK Capital Finance, a subsidiary of merchant banker A.K. Capital Services. These NCDs were priced at INR 10,000 each and carry a 9.75% coupon rate and are secured by 110% collateral and mature in February 2027.
Business Model & Growth Trajectory
Founded in 2016 by Ruchi Kalra, Ashish Mohapatra, Bhuvan Gupta, and Vasant Sridhar, Oxyzo was originally a credit engine within OfBusiness. It has since become a non-banking financial company (NBFC) offering customised financial solutions such as supply chain financing, cash flow based lending, working capital loans and term loans to SMEs across India.
With a focus on bridging the credit gap for SMEs, Oxyzo has disbursed loans to over 5,000 enterprises and supported more than 20 new age tech startups across sectors like mobility, agritech, SaaS, climate tech, D2C, logistics, healthtech and clean energy.
The company’s Assets Under Management (AUM) is over INR 5,000 Cr.
Financials at A Glance
Oxyzo has shown strong financials:
- FY24 (2023–24):
- Revenue: INR 903.3 Cr (up 59% YoY)
- Net Profit: INR 290 Cr (up 47% from INR 197.5 Cr in FY23)
- Q3 FY25 (Oct–Dec 2024):
- Revenue: INR 282.8 Cr (up 27.4% YoY)
- Net Profit: INR 82.89 Cr (up 11.4% YoY)
This shows Oxyzo is a profitable and scalable fintech in the Indian lending space.
The company’s loan book reached INR 6,850 crore by the end of September 2024, up from INR 6,600 crore in March. Around 70% of the loan book is secured, with just 0.9% of unsecured loans delayed beyond 90 days—a testament to its prudent risk management.
According to ICRA, the NBFC is expected to grow its loan book at 15–20% CAGR in the medium term. As of now, Oxyzo maintains a solid liquidity buffer with INR 360 crore in cash reserves and INR 362 crore in unutilised funding lines.
IPO Buzz and Ownership Structure
While OfBusiness is planning a USD 750 Mn – 1 Bn (~INR 8,563 crore) IPO in H2 2025, Oxyzo itself is eyeing a future public listing. Though no timeline has been announced, the company has become a public limited company and has been raising capital consistently which is a precursor to an IPO.
According to some industry report, OfBusiness holds 74.5% stake in Oxyzo. Among external investors Alpha Wave Global has 7.4%, followed by Tiger Global, Norwest Venture Partners, Matrix Partners and Creation Investments. Oxyzo became unicorn in 2022 after a USD 200 million (~INR 1,712 crore) Series A round co-led by Alpha Wave and Tiger Global — the first Indian startup to reach USD 1 billion (~INR 8,563 crore) valuation at Series A.
What’s Next
With a strong foundation in structured SME lending, proven profitability and growing investor interest, Oxyzo is gearing up for long term growth. The latest debt round has strengthened its cash reserve and also reflects institutional.
As India’s fintech and alternative credit market continues to evolve, all eyes will be on Oxyzo’s next move — especially its public listing which could change the landscape of SME lending in the country.
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