B2B commerce and financing platform OfBusiness is preparing for an $800 million IPO, with plans to file preliminary documents by November 2026. The company recently reported improved profitability in FY26 despite lower revenue, highlighting a shift toward higher-margin business lines. Investors should note the company’s dual focus on raw material trade and lending, alongside risks linked to commodity price volatility.
OfBusiness, the B2B commerce and financing platform known formally as OFB Tech, has revived its plans for an initial public offering (IPO) in India. The company is aiming to raise approximately $800 million, signaling a renewed attempt to list on the stock exchanges. To manage the process, the company is working with a consortium of major banks, including Axis Capital, Morgan Stanley, JPMorgan Chase, and Citigroup. The preliminary documents, known as the Draft Red Herring Prospectus, are expected to be filed as early as November 2026.
This development comes after a previous attempt to go public was put on hold due to unfavorable market conditions and internal restructuring. The current plan is expected to include a mix of new shares being issued to raise up to $200 million, while existing shareholders may offload some of their stake in an offer for sale.
For investors, the company's financial performance in the 2026 fiscal year offers a view into its current strategy. OfBusiness reported a consolidated revenue of ₹20,645 crore, which is a 7% decline compared to the previous year. However, the company’s net profit rose by 21% to ₹724 crore during the same period. This contrast highlights a strategic decision to exit lower-margin business lines and focus on segments that offer better profitability. As a result of this shift, the company’s operating profit margin improved to 4%, up from 2.6% in the prior year.
The company operates with a hybrid business model that combines raw material procurement with financing solutions for small and medium-sized enterprises. A key part of this ecosystem is its lending arm, Oxyzo Financial Services. Oxyzo has been a significant contributor, reporting assets under management—or the total value of loans it has provided—of ₹11,800 crore. Its asset quality appears stable, with a gross non-performing asset ratio of 0.75%, which represents the portion of loans that are considered bad or overdue.
While the company has shown signs of a financial turnaround, there are inherent risks that investors should consider. The business model is heavily exposed to the cyclical nature of commodity markets. Since the company trades in items like metals, chemicals, and agricultural products, sudden price swings in these commodities can directly impact profit margins. Additionally, the company faces intense competition from both organized large-scale players and unorganized local traders. Execution risk is another factor, as the integration of manufacturing, trading, and financing businesses requires careful management to ensure sustained growth.
The most important monitorable for investors will be the upcoming regulatory filing. This document will provide more clarity on the company’s debt structure, exact valuation expectations, and how it plans to use the money raised from the new share issuance. Until then, the market will likely focus on how the company manages its commodity price risk and maintains its profitability as it prepares for the listing process.