Latest news with #OfBusiness
Mint
08-07-2025
- Business
- Mint
Z47 to raise $300-400 million maiden fund, its first since Matrix split
Mumbai: Z47, formerly Matrix Partners India, is in early discussions to raise its first fund, multiple people aware of the matter told Mint. The fund is likely to target a corpus of $300-400 million and could be launched sometime next year, they said. The investment firm is currently in talks with potential investors and is also exploring partial exits from some portfolio companies to demonstrate interim liquidity. 'It is in conversations with various investors for the new fund. The current focus is to sell some stakes in its portfolio companies to show interim liquidity as this is their first venture post the split," said two people cited above. Z47 declined to comment. In today's cautious fundraising climate, showing distributed capital has become a crucial signal for private equity and venture capital firms seeking to raise successor funds. Z47 is eyeing secondary stake sales in companies such as Ola, OfBusiness, Razorpay, and Dailyhunt, which could fetch around $150–180 million, as per an Economic Times report last year. Talks are underway with other funds for a potential portfolio sale transaction. Z47, which ended its partnership with the US firm, has backed startups across consumer and enterprise tech sectors. Its portfolio includes OneCard, Captain Fresh, Country Delight, Jupiter, MoEngage, and Zupee, among others. Historically, Z47 has exited investments in companies like Avail, CreditVidya, Five Star Business Finance, ITZ Cash, Muthoot Finance, and Ola Electric through a mix of strategic sales and IPOs. 'OfBusiness and Razorpay are also expected to tap the public markets in the near future and are likely to give exits to some of their existing investors in the process," one of the people added. The new fund will come more than two years after the firm closed its fourth fund with a corpus of over $550 million, which focused on seed, early-stage, and early growth investments across sectors in India. Z47's effort mirrors a broader fundraising revival in Indian venture capital. Peak XV Partners, the rebranded Sequoia India & SEA, is also in early talks to raise a new India-Southeast Asia fund of up to $1.4 billion—its first since the split from Sequoia Capital. The fund is likely to be raised by the end of the current financial year, Mint reported earlier. In parallel, Peak XV has exited in part or full from several portfolio companies over the past 12–18 months, including Porter, Rebel Foods, HealthKart, Finova, K12 Techno, and Cloudnine Hospitals. It has also pared stakes in listed and pre-IPO firms such as Ixigo, Awfis, Go Digit General Insurance, Blackbuck, Zomato, Mamaearth, Truecaller, Indigo Paints, Five Star Business Finance, and MobiKwik. Several other Indian investment firms, including Kedaara, ChrysCapital, Stellaris Venture Partners, India Quotient, Sixth Sense Ventures, Prime Ventures, Accel, A91 Partners, Cornerstone VC, and Bessemer Venture Partners, have also returned to the market to raise new funds over the past six to eight months. Z47 joins the growing list of firms such as Nexus Venture Partners, Lok Capital, Chiratae Ventures, Tenacity Ventures, Peak XV Partners, WEH Ventures, InCred Alternative Investments, Avataar Venture Partners, Blume Ventures, and Fireside Ventures preparing for fresh fundraises in a market that is showing cautious optimism.
Mint
24-06-2025
- Business
- Mint
Moglix's ₹600-cr war chest: What this unicorn is buying before its India IPO
Gift this article Accel-backed Moglix has earmarked ₹ 500-600 crore for acquisitions in FY26, as the online B2B marketplace for industrial tools and equipment aims to expand its product categories, with a particular focus on traditional manufacturing businesses in sustainable packaging and related sectors, a top company official official told Mint. Accel-backed Moglix has earmarked ₹ 500-600 crore for acquisitions in FY26, as the online B2B marketplace for industrial tools and equipment aims to expand its product categories, with a particular focus on traditional manufacturing businesses in sustainable packaging and related sectors, a top company official official told Mint. This initiative comes as the Singapore-headquartered unicorn prepares for a public listing in India in about two years. The startup—valued at $2.6 billion—has already spent close to ₹ 200 crore in the last two years towards acquiring manufacturing businesses and distributors, in a bid to strengthen its industrial procurement network. Its latest purchase was Uttarakhand-based paper manufacturer Khatema Fibres for ₹ 80 crore in November last year. 'We currently have over 150 categories and there is a multitude of opportunities in distribution and manufacturing. We are broad-based in terms of acquisition and will make a choice when we find the right asset in any category," Rahul Garg, founder and chief executive of Moglix, said in an interview. Most of Moglix's acquisitions are likely to be traditional manufacturing business as a large chunk of the industrial equipment industry is fragmented and unorganized, according to Garg. 'Both distribution and manufacturing are relatively traditional sectors and that is a primary target for us. We continue to operate in physical plus digital space so we have acquired distribution companies. We also continue to invest in building manufacturing plants." Packaging is already among Moglix's top 10 categories and has immense potential for growth, Garg noted. 'I believe it could become a ₹ 1,000-crore category in the next few years—it's already nearing ₹ 500 crore." Business-to-business (B2B) marketplaces that are online-first and technology-enabled are expected to represent a market opportunity of $200 billion by 2030 from $20 billion in 2022, according to estimates by Bessemer Venture Partners. Founded in 2015 by Garg, a former Google executive, Moglix has raised over $370 million to date. Backed by Tiger Global, Accel and Alpha Wave Global, Moglix competes with IPO-bound OfBusiness, and Zetwerk in the industrial supplies space. OfBusiness, currently valued at around $5 billion, has appointed Axis, JP Morgan, and Citi Bank as bankers for its upcoming $1-billion public issue, according to a Reuters report. Zetwerk is reportedly eyeing an IPO in the first half of 2025, aiming to raise as much as $1 billion. In March, Moglix appointed Sanjeev Arora as chief financial officer to focus on capital planning and prepare the company to enter the public markets. The firm will accelerate its IPO plans including initiating conversations with bankers towards the end of this year, with the aim of going public in less than two years, Garg said. In FY24, Moglix focused on balancing growth and profitability. Its revenue rose marginally to ₹ 4,964 crore from ₹ 4,704 crore the previous year, while losses eased to ₹ 189 crore. Moglix's revenue and profit improved year-on-year in the fiscal year ended March 2025, Garg said, without revealing exact figures as the financial statements are yet to be filed with the Registrar of Companies (ROC). The company ramped up its use of technology during the year, automating customer service and internal operations to improve efficiency—a move Garg believes will yield long-term benefits. Topics You May Be Interested In
Economic Times
29-05-2025
- Business
- Economic Times
Lender Oxyzo's revenue rises 34% to Rs 1,207 crore in FY25; net profit up 17%
Oxyzo Financial Services, the lending arm of SoftBank-backed B2B commerce startup OfBusiness, reported a 33.6% jump in operating revenue to Rs 1,207 crore for the fiscal year ended March 2025, driven by a 32% increase in interest income. The Gurugram-based company posted a net profit of Rs 339.1 crore for the year, up 16.7% from Rs 290.5 crore the previous fiscal year. Interest income from loan disbursements contributed Rs 1,140.6 crore, accounting for 95% of Oxyzo's operating revenue. The remainder largely came from fee and commission in 2015 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta and Nitin Jain, IPO-bound OfBusiness operates an ecommerce platform that enables manufacturing companies to source raw materials online. Its catalogue includes steel, non-ferrous metals, chemicals, agricultural products, polymers, energy commodities, textiles, construction materials and majority-owned by OfBusiness, works closely with the parent platform to offer credit facilities to its customers. Despite the improved financial performance, the company's total expenses rose 46% year-on-year to Rs 754.6 crore in FY25, up from Rs 514.2 crore. Finance costs increased 38.3%, while employee benefit expenses rose 24.3% to Rs 143 crore. In 2022, ET reported that Oxyzo raised its first external funding round of $200 million at a post-money valuation of $1 billion, making it a unicorn.'We've grown with prudence — focusing not just on scale, but on the quality of our book, our risk practices, and our deepening presence across core sectors of the Indian economy,' Kalra, CEO and cofounder, said in a statement. According to data from Tracxn, OfBusiness holds a 67.5% stake in Oxyzo, while Alpha Wave Global owns around 7.1% and Tiger Global holds about 4.3%. OfBusiness converted into a public entity in January, a key step toward its planned initial public offering, which is expected to raise between $750 million and $1 billion when it happens, according to reports.
