SoftBank-backed OfBusiness is preparing to revive its IPO plans, targeting a raise of up to $800 million. The B2B commerce and financing platform is focusing on higher profitability, reporting a 21% rise in annual profit to ₹724 crore for FY26 despite a slight revenue decline.
OfBusiness, known formally as OFB Tech, is moving ahead with plans for an initial public offering (IPO) that could raise between $800 million and $1 billion. The company, which operates a B2B commerce and credit platform for small and medium-sized enterprises, is reportedly engaging with major financial institutions to manage the process, with an eye on filing draft papers by November 2026.
This move comes after a previous attempt to go public was paused due to market conditions. For investors, the company's recent performance provides a clearer picture of its shift in strategy. In the financial year 2026, OfBusiness reported consolidated revenue of ₹20,645 crore, a 7% decline compared to the previous year. However, this drop was largely intentional, as the company moved away from low-margin product categories to prioritize more profitable business segments.
The strategy appears to be yielding results. Despite lower top-line revenue, the company’s net profit grew by 21% to ₹724 crore, while EBITDA margins improved to 4% from 2.6% in the prior year. Additionally, the company’s commerce division has turned free cash flow positive, reporting ₹390 crore for the year, indicating a stronger focus on cash generation.
Lending Arm Performance
Beyond its B2B commerce platform, OfBusiness operates an internal lending arm called Oxyzo Financial Services. This division is a critical part of the company's ecosystem, providing essential working capital to its SME clients. Oxyzo reported assets under management (AUM) of ₹11,822 crore in FY26. The asset quality appears stable, with gross non-performing assets (NPAs) standing at 0.74%. For potential investors, the stability and growth of this lending book will be an important factor in understanding the overall risk and return profile of the business.
Risks and Monitorables
While the financial shift toward profitability is notable, the company faces several risks common to the fintech and B2B commerce sectors. Competitive pressure remains high, and any slowdown in the SME ecosystem could impact both demand and credit performance. Furthermore, because a significant part of the business involves lending through an NBFC, the company is sensitive to regulatory changes in the financial services sector.
As the company prepares for its potential IPO, market participants will likely look closely at the upcoming draft prospectus for details on the final size, valuation, and how the company plans to deploy the capital. The timeline for the launch remains subject to regulatory approval and prevailing market conditions in the Indian primary market.