Oxyzo

High-Level Overview

Oxyzo Financial Services Limited is a Gurugram-based fintech unicorn that provides technology-driven, collateral-free credit solutions to small and medium enterprises (SMEs) in India, focusing on working capital financing, purchase finance, invoice discounting, and loans for machinery or property.[1][2][3][4] Originally the lending arm of B2B platform OfBusiness, it has evolved into an independent NBFC serving over 5,000 SMEs with assets under management exceeding INR 5,000 Cr, achieving consistent profitability with a pre-tax RoA of around 5.5% and FY24 net profit of INR 290 Cr.[1][4][6] Oxyzo leverages advanced algorithms and data analytics for quick, transparent loans, disrupting traditional banking by addressing cash flow gaps without collateral, and has raised $273.93M in funding, including a recent $62.4M debt round.[2][4]

Origin Story

Oxyzo was founded in 2016 by Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, and Srinath Ramakkrushnan as the financing arm of OfBusiness, a B2B procurement platform supplying raw materials to SMEs.[1][2][3] The idea emerged from founders' firsthand experience with SMEs' struggles: traditional banks and NBFCs delayed credit approvals, causing lost purchase orders, prompting Ruchi Kalra to state, "By the time they gave us a limit for credit, we would have lost the purchase order. So, we decided to do it on our own."[1][2] Early traction came from OfBusiness data enabling faster, lower-risk lending; it quickly scaled beyond OfBusiness suppliers (now 70% external), achieving unicorn status in 2022 via a $200M round led by Alpha Wave Global and Tiger Global.[1][4]

Core Differentiators

• Technology-Driven Underwriting: Uses advanced algorithms and OfBusiness-derived data for cash flow-matched, collateral-free loans with faster approvals, lower rates, and flexible terms, outperforming traditional banks' collateral-heavy, slow processes.[1][2][4]
• Comprehensive SME Solutions: Offers diverse products like working capital finance, invoice discounting, purchase finance, property-backed loans, and growth capital to over 20 tech startups in sectors including mobility, agritech, and logistics.[3][4][7]
• Proven Financial Track Record: Maintains operational efficiency with 5.5% pre-tax RoA, 47% FY24 profit growth to INR 290 Cr, and INR 810 Cr revenue (31% YoY), while innovating in origination, structuring, and distribution.[1][4][6]
• Customer-Centric Digital Platform: Streamlines lending for transparency and accessibility, earning trust in an underserved market and recognitions like "New Unicorn of the Year 2022" and "Best Fintech of the Year 2020-21."[2][6]

Role in the Broader Tech Landscape

Oxyzo rides India's booming SME fintech wave, where digital lending bridges a massive working capital gap for millions of underserved businesses amid rising e-commerce and B2B digitization.[1][2] Timing aligns with regulatory shifts favoring NBFCs and post-pandemic SME recovery, enabling collateral-free models that traditional banks can't match due to legacy constraints.[2][4] Market forces like data proliferation and AI advancements favor Oxyzo's analytics edge, while its independence from OfBusiness expands reach, influencing the ecosystem by funding startups in high-growth areas like agritech and clean tech, fostering broader SME scaling and economic inclusion.[1][4]

Quick Take & Future Outlook

Oxyzo is poised for expansion as a full-stack SME financial services provider, targeting comprehensive needs like long-term financing and tech startup growth capital across India.[1][4] Trends like AI-enhanced risk assessment, IPO readiness (mirroring OfBusiness), and rising SME digitization will propel its loan book beyond recent 14% growth slowdowns.[4][6] Its influence may evolve toward IPO and pan-India dominance, solidifying disruption of legacy lending—transforming SMEs from cash-strapped to scalable enterprises, much like its origins from a single pain point in OfBusiness procurement.[1][2]