News Summary

OfBusiness Arm Oxyzo has announced a major expansion of its financial services operations by entering the fund management business with the launch of its first performing credit fund. The new fund is designed to support businesses across India’s industrial and manufacturing sectors while opening up a new revenue channel for the fintech lender. This move highlights a growing trend within the Indian startup ecosystem where fintech companies are evolving from pure lending platforms into diversified financial institutions. The new fund, reportedly targeting around ₹3,000 crore, aims to provide structured credit solutions to small and medium enterprises (SMEs) as well as mid-sized industrial businesses. These companies often struggle to access capital from traditional banks due to strict collateral requirements and lengthy approval processes. By launching this credit fund, Oxyzo intends to bridge the financing gap while also offering investors an opportunity to participate in India’s expanding credit market.

Oxyzo is the lending arm of OfBusiness, a major Indian B2B commerce and fintech startup founded by Asish Mohapatra, Ruchi Kalra, and Bhuvan Gupta. The company built its reputation by combining supply chain solutions with financial services for small businesses. Over time, the platform evolved into a large venture-backed startup serving thousands of industrial customers across India. The launch of the credit fund also signals Oxyzo’s ambition to become a larger asset management and credit platform. By managing funds from institutional investors and deploying them through its lending infrastructure, the company can scale faster while diversifying its funding sources.

This development arrives at a time when India’s alternative credit market is growing rapidly. Venture capital firms, private credit funds, and fintech lenders are increasingly filling the financing gap left by traditional banks. As a result, initiatives like this credit fund could strengthen the broader startup ecosystem by providing capital to fast-growing businesses. The entry of OfBusiness Arm Oxyzo into fund management therefore represents more than a product launch. It reflects the ongoing transformation of India’s fintech landscape, where startups are building innovative financial platforms that reshape how businesses access capital.

1. Introduction to OfBusiness Arm Oxyzo and the Credit Fund Launch

1.1 The Strategic Move by OfBusiness Arm Oxyzo

OfBusiness Arm Oxyzo has taken a major step into asset management by launching its first performing credit fund. The fund reportedly targets around ₹3,000 crore and will focus on lending to mid-market companies and SMEs across India’s industrial ecosystem. This move represents a strategic shift for the fintech lender. Until now, Oxyzo primarily focused on providing working capital and supply chain financing to businesses. However, the new fund management initiative expands its role from a lender to a credit investment platform. In recent years, the Indian startup ecosystem has seen rapid growth in fintech innovation. Startups are exploring new financial models that combine technology with venture capital, credit markets, and asset management. Therefore, Oxyzo’s entry into fund management reflects broader startup trends in the fintech sector.

1.2 Why the Credit Fund Matters

Access to capital remains one of the biggest challenges for Indian SMEs. Traditional banks often hesitate to lend due to risk concerns. As a result, alternative lenders and venture-backed fintech companies have stepped in to fill the gap. The new credit fund launched by Oxyzo aims to provide structured financing solutions for businesses that need working capital, expansion funding, or supply chain financing. Consequently, the initiative strengthens the role of Indian startups in solving real-world financial problems.

2. Background of OfBusiness and Oxyzo

2.1 Founding of OfBusiness

OfBusiness was founded in 2016 by Asish Mohapatra, Ruchi Kalra, and Bhuvan Gupta, a trio of entrepreneurs who had previously collaborated at Snapdeal and other tech ventures. They saw a critical gap in India’s B2B ecosystem: small and medium enterprises often struggled to procure raw materials efficiently while accessing financing on fair terms. The founders envisioned a platform that combined digital commerce with fintech allowing businesses to buy raw materials while offering tailored financial solutions. This dual approach was ambitious, but it struck a chord. Businesses, particularly in manufacturing and industrial sectors, were eager for transparency, reliability, and financial support. By integrating supply chain operations with financing, OfBusiness created a solution that was not only practical but transformative.

The startup quickly attracted the attention of venture capitalists. Global investors recognized the platform’s potential to address one of India’s most fragmented and underserved markets. Funding rounds provided the capital needed to scale operations, invest in technology infrastructure, and expand the team. Within a few years, OfBusiness established itself as one of India’s fastest-growing B2B startups, redefining how businesses accessed raw materials and finance simultaneously.

2.2 Rise of Oxyzo as the Lending Arm

Oxyzo was conceived as the financial engine powering OfBusiness. While OfBusiness simplified the procurement of raw materials, many SMEs still faced a common challenge: working capital. Traditional banks were often slow, bureaucratic, or unwilling to extend credit to smaller companies with limited collateral. Oxyzo stepped in to bridge this gap. Its mission was to provide flexible financing solutions to businesses transacting on the OfBusiness platform. Over time, Oxyzo evolved into a major fintech lender in India, serving thousands of companies across multiple sectors. Its lending model focuses on supply chain financing, invoice-based loans, and working capital credit, enabling companies to purchase materials immediately and repay later under structured terms.

This approach does more than offer convenience it changes the way businesses operate. Companies no longer have to delay production or manage strained cash flows due to financing constraints. For many SMEs, access to Oxyzo’s loans has meant the difference between stagnation and growth. By combining commerce and credit, Oxyzo became an indispensable part of the OfBusiness ecosystem, cementing the firm’s reputation as a platform that truly understands and solves the challenges of Indian businesses.

3. The Credit Fund: Structure and Objective

3.1 Details of the ₹3,000 Crore Fund

In a bold move, Oxyzo has launched a performing credit fund targeting ₹3,000 crore. Unlike speculative lending models, this fund invests in performing credit assets loans that already demonstrate repayment reliability and predictable cash flows. This focus ensures that investors are taking lower-risk positions while still enabling companies to access significant capital. The fund reflects a growing trend in India’s fintech and venture-backed ecosystem: private credit funds are emerging as a reliable alternative to traditional banking. They provide both scale and speed, allowing businesses to grow without being constrained by slow institutional processes.

For investors, the structure is attractive. By targeting performing assets, the fund balances the need for returns with the imperative to manage risk prudently. For borrowers, it provides timely and predictable access to growth capital, enabling them to invest in raw materials, operations, and expansion confidently.

3.2 Target Borrowers

The credit fund primarily serves mid-sized companies in sectors such as manufacturing, construction, and supply chain services. These businesses are vital to India’s industrial backbone but frequently struggle to secure loans from conventional banks due to perceived risks or insufficient collateral. By offering tailored credit solutions, Oxyzo empowers these businesses to scale operations, maintain steady production, and manage working capital efficiently. Many companies report that access to Oxyzo loans has transformed their growth trajectory allowing them to take larger orders, expand into new markets, and improve supplier relationships.

This initiative aligns with the broader fintech trend of using technology to democratize access to credit and reduce reliance on traditional banking systems. For entrepreneurs and SMEs, the fund represents not just financing, but a lifeline that drives operational stability and growth.

4. Working Model of Oxyzo

4.1 How the Platform Works

Oxyzo functions as a fintech credit platform deeply integrated with OfBusiness’s commerce operations. Companies using the platform can seamlessly apply for working capital loans or supply chain financing. Once an application is submitted, Oxyzo leverages technology to perform rapid risk assessment, evaluating factors such as purchase history, supplier reliability, and payment behavior.

Approved loans are disbursed quickly, often within a fraction of the time traditional banks take. This speed is critical for businesses that operate on tight timelines and need immediate access to materials and capital. Many SMEs have shared that the efficiency of Oxyzo’s platform has allowed them to avoid production delays, fulfill large orders, and maintain cash flow without stress.

In essence, Oxyzo acts as both financier and growth enabler. It transforms a routine procurement transaction into a strategic opportunity for business expansion.

4.2 Technology and Data Advantage

Oxyzo’s competitive edge comes from its data-driven approach. The platform harnesses transactional insights from OfBusiness, including purchase patterns, supplier relationships, and repayment behavior. By analyzing this data, Oxyzo accurately assesses creditworthiness, reducing risk for both the company and investors.

This model demonstrates how fintech innovation can reshape traditional lending. Unlike banks, which often rely heavily on collateral, Oxyzo leverages real-time business data to make informed credit decisions. This approach not only speeds up financing but also makes loans accessible to businesses that were previously underserved. The combination of technology, data intelligence, and industry expertise has allowed Oxyzo to scale rapidly while maintaining low default rates. For SMEs, it’s a game-changer—a practical, reliable, and empowering financial solution that drives tangible results in the real world.

5. Revenue Model of Oxyzo

5.1 Lending Income

At the core of Oxyzo’s business lies its lending operations. The company generates revenue primarily through interest on loans extended to businesses. These loans cover working capital, supply chain financing, and invoice-based credit. The interest rate for each loan is carefully calibrated based on the borrower’s risk profile, repayment history, and the loan tenure.

This is more than just a financial transaction it is a lifeline for businesses navigating day-to-day operational challenges. Many SMEs report that access to Oxyzo’s loans has allowed them to meet supplier deadlines, scale production, and even take on larger orders than previously possible. The interest income from these loans forms the backbone of Oxyzo’s financial stability while simultaneously enabling tangible business growth for its clients. By relying on data-driven credit evaluation rather than traditional collateral-heavy models, Oxyzo reduces default risk while serving businesses that conventional banks often overlook. This combination of financial prudence and real-world impact gives the company both a solid revenue foundation and a meaningful role in India’s SME ecosystem.

5.2 Fund Management Fees

With the launch of its ₹3,000 crore credit fund, Oxyzo has added a second significant revenue stream: fund management. Institutional investors, including venture capital firms and private equity players, contribute capital to the fund and pay annual management fees. These fees cover fund operations, risk assessment, and investor relations.

Beyond management fees, Oxyzo stands to earn performance-based income if the fund delivers strong returns. This model aligns incentives between the company, investors, and the borrowers, creating a mutually beneficial ecosystem. It also diversifies Oxyzo’s revenue base, reducing dependence solely on lending income and strengthening the company’s financial resilience. The fund model is a clear demonstration of how fintech innovation is not just about lending faster it’s about structuring entire financial ecosystems that generate recurring income while supporting industrial growth.

6. Funding and Investors

6.1 Venture Capital Backing

OfBusiness and Oxyzo’s rise has been fueled by robust venture capital support. The company has attracted global investors such as SoftBank Vision Fund, Tiger Global, Alpha Wave Global, and Matrix Partners. These investors have not only provided capital but also strategic guidance, helping the company scale operations, expand technology infrastructure, and broaden its lending portfolio.

The infusion of venture funding enabled OfBusiness to grow rapidly into one of India’s most prominent unicorns, while Oxyzo became a credible fintech lending platform. Many of the businesses borrowing from Oxyzo are now able to access financing they could never secure from traditional banks, reflecting the tangible impact of these investments on the SME ecosystem.

6.2 Growth of Venture-Backed Fintech

The success of Oxyzo mirrors a larger global trend: investors are increasingly backing fintech startups that provide digital credit and financial services. The appetite for faster, more flexible financing solutions has surged, particularly in emerging markets like India.

Investors are recognizing that traditional banking models leave a large portion of SMEs underserved. Fintech platforms like Oxyzo are stepping into that gap, offering tailored credit solutions that drive growth for businesses while providing sustainable revenue for the company. This alignment of technology, finance, and business impact is what makes venture-backed fintech such a powerful engine for economic development.

7. Problems Oxyzo Solves

7.1 Bridging the Credit Gap for SMEs

India’s small and medium enterprises face a persistent credit gap. Many are unable to meet the stringent requirements of traditional banks, such as collateral or extended documentation. Oxyzo changes that reality by offering loans that are accessible, flexible, and fast.

For many businesses, this access is transformative. Entrepreneurs can invest in expansion, hire new employees, or secure raw materials without waiting months for bank approvals. The ripple effect is significant: more production, more jobs, and more robust growth for local industries.

7.2 Solving Supply Chain Financing Challenges

Another pressing problem for SMEs is the mismatch between cash inflows and outflows. Manufacturers often need capital to purchase raw materials but face delayed payments from customers. Oxyzo’s working capital and supply chain financing solutions bridge this gap. By tying credit to actual supply chain transactions, Oxyzo ensures that businesses can continue operations smoothly, even in the face of delayed revenue. Companies report fewer production stoppages, timely deliveries to clients, and increased trust among suppliers. This operational stability doesn’t just boost profits; it strengthens business relationships and builds confidence in long-term growth. Through a combination of lending innovation, technology-driven credit evaluation, and strategic funding, Oxyzo has positioned itself as more than just a lender it’s a partner in growth for India’s SME sector.

8. Industry Growth Trends

8.1 Rise of Private Credit Funds

Private credit has emerged as one of the fastest-growing segments in global finance, and for good reason. Traditional banks often struggle to provide timely and flexible financing, especially to SMEs and mid-sized companies. Private credit funds, in contrast, offer a compelling alternative: structured investments in performing loans that generate steady returns while mitigating risk.

Globally, institutional investors including pension funds, insurance companies, and sovereign wealth funds are increasingly allocating capital to private credit. The appeal lies in stability and predictability: unlike equity, which depends on company exits or IPOs, private credit delivers regular cash flows from interest payments. India is catching up rapidly. Fintech firms are recognizing that digital lending platforms can act as both originators and managers of private credit. Oxyzo’s launch of a ₹3,000 crore performing credit fund aligns perfectly with this global trend. By focusing on businesses with proven repayment capacity, Oxyzo provides a safe, scalable model for investors while simultaneously addressing India’s SME credit gap.

8.2 Fintech Expansion in India

India’s fintech ecosystem has grown exponentially over the past decade. The proliferation of digital payments, online lending platforms, and financial infrastructure startups has transformed how businesses and consumers access capital. Startups like Oxyzo are thriving because they address a real need: the inability of small and mid-sized enterprises to secure quick, flexible financing. By leveraging technology to assess creditworthiness in real time, fintech lenders reduce reliance on lengthy bank processes, enabling businesses to act on opportunities immediately.

The growth of fintech is also attracting global venture capital. Investors are drawn to the potential of India’s vast market, the scale of the SME sector, and the transformative impact of digital credit. The result is a virtuous cycle: increased funding fuels fintech expansion, which in turn strengthens the overall startup ecosystem.

9. Competitors in the Market

9.1 Direct Competitors

Oxyzo operates in a highly competitive landscape of fintech lenders focusing on SME financing. Competitors include platforms specializing in supply chain finance, invoice discounting, and working capital loans. These companies, like Oxyzo, leverage digital tools to provide faster approvals, lower friction, and more flexible terms than traditional banking options.

The competition is intense because India’s SME sector is enormous, with millions of businesses seeking financing to sustain operations and grow. For fintech firms, success depends not only on speed but also on trust, reliability, and the ability to assess risk accurately. Oxyzo’s integration with the OfBusiness platform gives it a competitive advantage: access to transaction data allows for more precise lending decisions and lower default rates.

9.2 Indirect Competitors

Traditional banks and non-banking financial companies (NBFCs) continue to compete for SME financing, but they often lose out to fintech platforms. Bureaucratic processes, slower approval cycles, and rigid collateral requirements make banks less attractive to businesses in need of fast, flexible capital.

This competitive pressure drives innovation. Fintech lenders constantly refine their credit scoring algorithms, digital onboarding processes, and customer experience. The result is a market that benefits SMEs through faster funding, more tailored financial products, and better operational outcomes.

10. Impact on the Startup Ecosystem

Oxyzo’s entry into fund management represents more than just a business move it could reshape the broader startup ecosystem in India. By launching a performing credit fund, the company demonstrates a model that combines lending with asset management, creating new revenue streams and investment opportunities. This approach encourages other fintech firms to explore hybrid models that integrate credit origination, fund management, and technology-driven risk assessment. It also signals to investors that fintech platforms are becoming more sophisticated, capable of managing large-scale capital while mitigating risk.

For startups seeking funding, this evolution is significant. Access to structured credit from fund-backed fintech platforms provides alternatives to traditional equity financing, allowing companies to scale without diluting ownership. Over time, these developments could strengthen India’s startup ecosystem by providing reliable, scalable financial infrastructure for emerging businesses.

11. Learning for Startups and Entrepreneurs

The journey of Oxyzo and OfBusiness offers several critical lessons for entrepreneurs:

1. Solve Real Problems: Oxyzo’s success stems from identifying and addressing a genuine gap the credit deficit for SMEs. Startups that focus on tangible pain points create lasting value.
2. Leverage Technology: Building robust digital infrastructure enables scaling. Oxyzo’s use of transaction data to assess creditworthiness allows rapid decision-making and reduces risk.
3. Diversify Revenue Streams: The credit fund illustrates the importance of expanding beyond the core product. Multiple income channels lending, fund management, and technology services provide resilience and long-term growth.
4. Think Long-Term: OfBusiness’s vision extends beyond a single solution. By connecting commerce, fintech, and lending, the founders created an ecosystem that supports businesses at every stage of growth.
5. Adapt to Market Evolution: Fintech and startup ecosystems evolve quickly. The ability to anticipate market trends, investor behavior, and sector growth is essential for building sustainable businesses.

Ultimately, Oxyzo’s story shows that successful startups combine problem-solving, technology, strategic diversification, and visionary thinking. Entrepreneurs who internalize these lessons can navigate complex markets and create impactful, enduring businesses.entrepreneurs.

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