SoftBank-backed OfBusiness Prepares for $1 Billion IPO Amid India’s Stock Market Boom

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OfBusiness, a leading Indian business-to-business (B2B) e-commerce platform backed by SoftBank, is gearing up for a significant initial public offering (IPO) valued at up to $1 billion. This move will mark a major milestone for the company, which supplies raw materials to businesses across India. Bhavesh Keswani, the company’s Chief Financial Officer, recently confirmed that OfBusiness is in advanced discussions with several global banking giants, including Bank of America, Citi, JP Morgan, and Morgan Stanley, to manage the IPO. The listing is expected to take place on Indian stock exchanges in the second half of 2025.

The IPO is projected to raise between $750 million and $1 billion, with approximately $200 million coming from new shares, while the remaining amount will be generated from existing shareholders selling their stakes to new investors. Keswani indicated that the proceeds from the IPO would be used for debt repayment and to expand the company’s operations. This marks the first public acknowledgment of the IPO by the company, signaling its intent to capitalize on favorable market conditions.

Though the exact valuation for the IPO has not been disclosed, industry insiders suggest that OfBusiness is targeting a valuation between $6 billion and $9 billion. The company’s last funding round in 2021 placed its valuation at $5 billion, and its financial performance since then has positioned it as one of the fastest-growing players in the Indian B2B e-commerce sector.

OfBusiness has attracted significant interest from major global investors. Japanese tech investor SoftBank Group and U.S.-based investment firm Tiger Global together hold roughly a 15% stake in the company, while Alpha Wave Global, an international investment firm, owns about 18%. These backers have been instrumental in supporting the company’s expansion since its inception in 2015.

The company was founded by Asish Mohapatra and Ruchi Kalra, a husband-and-wife duo who envisioned a platform to streamline the supply of raw materials for businesses in industries such as manufacturing, construction, and agriculture. Over the years, OfBusiness has raised more than $800 million from investors, cementing its position as a key player in the industrial e-commerce space.

OfBusiness is planning its IPO at a time when India’s stock market is experiencing a strong rally. The country’s benchmark index has risen by 16% so far in 2024, outpacing other major Asian markets. This surge in market activity has created a favorable environment for companies to go public. For instance, Ola Electric, another SoftBank-backed firm, recently completed a successful IPO in India, and Hyundai Motor is planning a $3 billion listing later this year.

The ongoing momentum in India’s capital markets reflects the broader growth of the Indian economy, which is currently the fastest-growing major economy in the world. With robust demand across sectors like manufacturing and construction, companies like OfBusiness are well-positioned to benefit from this upswing. The platform offers a wide range of products, including polymer materials, agricultural goods like pulses, and industrial steel from major suppliers such as Tata Steel.

In the fiscal year 2024, which ended in March, OfBusiness reported an impressive after-tax profit of $72.6 million on revenues of $2.3 billion. This strong financial performance highlights the company’s ability to generate sustainable growth in a highly competitive market. As part of its preparation for the IPO, OfBusiness is also in the process of merging several of its subsidiaries to streamline operations and present a more cohesive business structure to potential investors.

These efforts to simplify its corporate structure ahead of the IPO reflect the company’s focus on maximizing efficiency and ensuring it is in prime position to capitalize on the growing demand for B2B e-commerce solutions in India. With its core markets on the rise and its financials showing strong growth, OfBusiness is set to make a significant impact with its public listing.

OfBusiness’ planned IPO is part of a broader trend of Indian startups and established businesses looking to tap into the vibrant stock market to fuel their next phase of growth. As one of the fastest-growing B2B platforms in India, OfBusiness has the potential to become a leader in its field, particularly as it continues to expand its product offerings and strengthen its customer base.

With favorable market conditions, strong investor backing, and a clear growth strategy, OfBusiness is well-positioned to make its mark as a publicly traded company. The upcoming IPO will not only provide the company with the financial resources to continue its expansion but will also offer existing investors the opportunity to realize significant returns on their investments.

As the Indian economy continues to grow at a rapid pace, the demand for digital and e-commerce platforms like OfBusiness will likely remain strong. The company’s ability to adapt to changing market dynamics and maintain its competitive edge will be critical to its long-term success as a publicly listed entity.

OfBusiness’ forthcoming IPO is set to be a pivotal moment for the company and the broader Indian tech and industrial sectors. By raising between $750 million and $1 billion, the company aims to strengthen its financial position, repay debts, and continue expanding its operations in key sectors like manufacturing and construction. As it prepares for its public listing, OfBusiness is positioning itself as a major player in India’s digital economy, and its success could pave the way for future growth in the country’s B2B e-commerce market.