B2B platform Ofbusiness has reached a $3 billion valuation after recently closing a $200 million funding round, according to a Business Today report on Thursday (Sept. 30). Ofbusiness’ Series F fundraising effort, which was led by Tiger Global, puts the company at double its $1.5 billion valuation from July.
Vasant Sridhar, co-founder and CSO of Ofbusiness, confirmed the fundraising round to Business Today and welcomed Tiger Global “to the family.”
Earlier this year, Ofbusiness was valued at more than $800 million after it closed a $97 million funding round that was led by Falcon Edge Capital. Falcon Edge and fellow existing investor SoftBank Vision Fund II, which had contributed $160 million in a previous round, were also part of the Series F funding round.
Ofbusiness provides raw material sourcing services to the manufacturing industry and hands out credit to the businesses through its non-banking financial company (NBFC) arm. CEO Asish Mohapatra has said Ofbusiness will list on the stock exchanges in the next one to two years.
“Our technology platform negotiates with more than 100 manufacturers and suppliers across India to get best guarantee prices on bulk raw materials, i.e., structural steel, flats, TMT, polymer, paper and cement,” Ofbusiness said in a statement. “Our strong Pan-India presence and aggregate demand help us fetch volume discounts which, in effect, helps SMEs save another 3%.”
Lu (Fausha) Chen, senior strategy manager at Worldpay from FIS, recently told PYMNTS that the influence of B2C commerce on B2B payments has been far-reaching, causing ripple effects in buyer/supplier relationships.
The trends toward digitization were present in B2B payments before the COVID-19 pandemic began, but have been accelerated as the outbreak has lingered. B2B payments are moving away from paper checks in favor of faster and instant payments.