JSW One eyes IPO in 18-24 months, targets break-even this fiscal
Academy
Empower your mind, elevate your skills
JSW One Platforms, the business-to-business (B2B) ecommerce arm of the steel-to-cement conglomerate JSW Group, plans to go public in 18-24 months, joining peers like Zetwerk, Infra Market and OfBusiness in preparing for an initial public offering (IPO).'We will be breaking even this year, and active appointments with investment bankers will begin from the next financial year,' Gaurav Sachdeva, chief executive of JSW One, told ET in an interview.'We don't need large-scale capital today. This year is about building scale and planning for the next year,' he said.Founded in 2020 by Sachdeva and Parth Jindal, the scion of JSW Group, the online marketplace operates through two main entities — JSW One Distribution and JSW One Finance — which together offer materials, credit, and logistics services to micro, small and medium enterprises (MSMEs) in the manufacturing and building sectors.JSW One Platforms recently raised Rs 340 crore in a funding round led by Principal Asset Management, OneUp, and parent JSW Steel , taking its valuation to $1 billion and making it a unicorn.The company currently clocks Rs 1,400 crore in monthly gross merchandise value (GMV), handling around 2.4 million metric tonnes of steel annually, or about 1.6% of India's total steel supply.In FY24, JSW One reported a revenue of Rs 1,421.9 crore, a 4.2x jump from Rs 338.8 crore in the previous year. Its net loss had widened to Rs 277 crore, up from Rs 83.8 crore, as per data from Tracxn.One of the company's early differentiators, according to Sachdeva, was building a tech-enabled interface between buyers and sellers in an industry where transactions traditionally happened over phone calls.However, unlike traditional marketplaces, JSW One is not pursuing a multi-seller model.'Supply in the B2B space is concentrated, held by just a few players in the steel and cement sectors. JSW One does not intend to build a multi-seller marketplace but will instead operate as a platform focusing on enabling transactions, logistics, credit, in a tech-enabled way,' Sachdeva said.JSW One has built a network of 13 steel processing centres and launched JSW One Transportation Services, a fully owned logistics arm that manages last-mile delivery and part-truckload shipments.Sachdeva said around 40% of the company's GMV is on credit, with Rs 500 crore disbursed monthly through third-party lenders. The company itself does not extend credit directly.'We still use third-party credit because it's more efficient,' he said. 'Our NBFC is a different business that we are running to provide financial services or to provide credit to some part of JSW One ecosystem and then some part to the JSW group ecosystem. That's an independent business that we are running.'Sachdeva was previously the chief executive and managing partner of JSW Ventures, the venture investing arm of the Mumbai-based group.ET reported in March that Infra.Market's parent Hella Infra Market is planning to file for an IPO within 90 days. The company had earlier this year raised $121 million from investors including Tiger Global, Evolvence, Foundamental GmbH, Nikhil Kamath of Zerodha, and Capri Global.SoftBank-backed OfBusiness has also been in talks to launch a $1-billion IPO , as reported by Reuters, while Zetwerk, backed by Peak XV, is aiming to raise $400–500 million through its IPO While the construction industry is facing a slowdown amid a challenging market and pressure on steel prices, Sachdeva said demand remains strong and continues to grow each year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
10 minutes ago
- Business Standard
Slice SFB aiming to close FY26 in black, not looking to raise any capital
Slice Small Finance Bank has turned profitable on a monthly basis and is aiming to close FY26 in the black, a top official has said. The entity, which came out of a surprising merger between the fintech Slice and the North East SFB a few months ago, is adequately capitalised and not looking to raise any capital, its executive director Rajan Bajaj told PTI. The current focus is to build a pan-India business using the low-cost digital channels, and the entity is not interested in any more mergers, Bajaj said, adding that it may look at transitioning to a universal bank in the next five years. Before the merger, the North East SFB had reported a loss of Rs 441 crore, and Slice was also reporting losses. "We have turned profitable post-tax on a monthly basis and will close the year in profits," Bajaj said. The bank is adequately capitalised and the buffers will also be supported by the profits, he added. As per recent media reports, the bank was aiming to raise up to USD 300 million in capital. It is adding up to 3 lakh new accounts to its base on the back of digital journeys, Bajaj said, pointing out that the savings bank interest rate offering is at par with the RBI's repo rate and the fixed deposit offerings are a notch higher, which is helping in attracting customers. The pace of account opening is the fifth or the sixth fastest in the industry and at par with much bigger rivals, he said. On the lending front, it does consumer credit including unsecured personal loans and business credit which includes loans against property, he said, stressing that the focus is on serving people who may be underserved by the banking system. Aiming for a big increase in its borrowers and loan portfolio, the bank launched a UPI-based credit card on Saturday, Bajaj said, pointing out that over 30 crore of UPI users can be the potential target audience for such an offering. The bank stands to make an interchange of up to 1 per cent depending on where the credit facility is availed, and will also make revenues from rollovers and fees, he said. Bajaj said its personal credit vertical has been able to deliver credit at a cost which is a tenth of the industry courtesy digital inputs, and added that the credit costs are also 30 per cent lower than the industry average because of the analytics engine which is used for diligence. The bank also launched a 'UPI-powered bank branch' in Bengaluru, which can be used by any bank's customers for a slew of transactions, including cash deposits into any account using cash accepting machine, and then remitting the money to any mobile number, Bajaj said.
&w=3840&q=100)
Business Standard
10 minutes ago
- Business Standard
RBL Bank eyes wider margin from retail, CV finance rollout in 3 months
RBL Bank is aiming to widen its net interest margins (NIM) from retail assets by shifting the portfolio mix towards higher-yielding assets, a senior official has said. As part of the same strategy, the private sector lender will launch a commercial vehicle (CV) financing and used 4-wheeler finance in the next three months. The increase in NIMs, which is being targeted at a time when the entire industry is facing challenges on this front, will be achieved while maintaining the retail share in the overall loan mix at around 31 per cent level, Kumar Ashish, its head of retail assets and collections, told PTI. Ashish, however, did not share the current NIMs of the retail business nor did he share an aspirational number. It had reported a sharp decline in the overall NIMs to 4.89 per cent as against 5.45 per cent, and the narrowing was one of the reasons along with setbacks in the MFI business for the 76 per cent drop in the Q4 net profit at Rs 86 crore. He said at the bank level, it is aiming for expanding NIMs to 5.1 per cent. In retail assets, the bank's focus relies on going deeper into tier-II and III cities, where the bank already has a distribution network courtesy its 550 branches and over 1,500 business correspondent touchpoints. After understanding the customer needs and tailoring the product mix, it will focus on quicker turnaround times for delivering credit in categories such as tractor finance, gold loans, homes loans, business loans and the upcoming businesses, he said. Admitting that RBL Bank is a "challenger bank" in many of the retail businesses and will be up against aggressive competition, Ashish said it will have to find new niche of customers whose needs are unfulfilled, use a lot digital inputs for loan underwriting, depend on quicker turnaround times and have a control over the costs to deliver on higher NIMs. Citing the case of home loans, he said the bank will focus more on the affordable housing segment while even in the soon-to-be-launched CV segment, it will go after demand from customers a notch under prime to expand margins. On the costs front, it is making best use of the existing staffing for doing more, pointing out that the talent across branches which was primarily focused on liabilities will now be doing retail credit as well. "We would have to gain market share in order to grow," Ashish, who joined the bank from Aditya Birla Capital recently, made it clear. The CV financing will be done to smaller players in smaller cities and the bank's tractor financing team will be used for distribution, he said. It is also looking to get into the used four-wheeler business, where it will be focusing on tie-ups with car reselling portals such that a customer is able to get a quote on the loan as well in a single journey after selecting his car on the website, Ashish said. Meanwhile, on the MFI business, Ashish said the collections have further improved since the late-April commentary and are getting better. The lowest point in collections was in December last, when the troubles for the industry started, he said, adding that since then the collections are steadily climbing up. Maintaining the earlier commentary, Ashish said the bank is "optimistic" about the MFI business and added that the second half of FY26 will be a better story. Tamil Nadu and Karnataka, the two markets where the bank faced issues because of political moves to introduce ordinances, continue to be challenging and the bank is reducing exposure there, he said. It has a low or negligible exposure in Bihar, which is headed to polls soon. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
13 minutes ago
- Time of India
From Tatkal bookings for trains to ATM fees: Big changes coming in July 2025 - All you need to know
This is an AI-generated image, used for representational purposes only. The month of July 2025 is set to bring significant financial and service-related changes for Indian consumers, especially affecting train travellers and bank customers. These key shifts, from Aadhaar-based Tatkal ticket booking to new banking fees, could impact your daily transactions and travel plans. Here are the big changes applicable from the month of July: Aadhaar mandatory for online Tatkal bookings Starting July 1, Indian Railways will make Aadhaar authentication compulsory for booking Tatkal tickets online via the IRCTC website and mobile app. Travellers will need to link and verify their Aadhaar with their IRCTC profile to be eligible. A stricter Aadhaar-based OTP verification will come into effect from July 15 for all Tatkal tickets booked online. Additionally, authorised agents will be barred from booking Tatkal tickets during the first 30 minutes of the booking window. Even Tatkal tickets booked at PRS counters and through agents will require OTP verification from mid-July. Axis Bank revises ATM and account charges Axis Bank will implement revised charges across savings, NRI, and Trust accounts starting July 1. Customers exceeding their free transaction limits at Axis and non-Axis ATMs will now be charged Rs 23 per transaction, up from Rs 21. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Adidas Three Shorts With 60% Discount, Limited Stock Available Original Adidas Shop Now Undo This will apply to all financial transactions such as withdrawals and balance inquiries, beyond the free quota. Small Savings changes The government is set to announce the interest rates for small savings schemes, which will take effect during the quarter from July to September, reported ET. ICICI Bank to roll out new service fees ICICI Bank will also enforce a new set of service charges beginning July 1. According to ET, ATM users in metro cities will get three free transactions at non-ICICI ATMs, while non-metro customers will get five. Beyond these, Rs 23 will be charged for financial transactions and Rs 8.50 for non-financial ones. Other revisions include Rs 125 per international ATM withdrawal and updated fees for IMPS transfers. Cash transactions will be limited to three free branch/CRM uses a month, post which Rs 150 will be levied per transaction. With these sweeping changes across sectors, customers are advised to update their Aadhaar details, review their bank's updated charges, and complete necessary activations to avoid disruptions. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
