New Delhi, April 16 -- OfBusiness, a business-to-business raw materials procurement platform backed by Japanese investment firm SoftBank and New York-based Tiger Global, has raised Rs 100 crore ($11.7 million) in a fresh funding round as it prepares to list on the public market later this year.

The startup, which changed its status to a public company earlier this year ahead of a potential $1 billion initial public offering, has raised the capital from Cornerstone Ventures, a venture capital firm focused on software-as-a-service (SaaS) and enterprise technology companies.

"OfBusiness is our first investment in the late-stage strategy and one of the opportunities we have been excited about for a while now," said Abhishek Prasad, managing partner at Cornerstone Ventures.

This is the first investment from Cornerstone's second fund, which is aiming to raise $200 million. It had marked the first close in January 2025, receiving commitments for $40 million from its limited partners (LPs) that included domestic investors such as high net-worth individuals (HNIs), family offices, corporate houses, and other institutions.

Cornerstone backs both early-growth companies, which have an allocation of nearly 70% of the corpus, and late-stage B2B businesses.

VCCircle previously reported that IPO-bound OfBusiness was in the market to secure capital. As a part of this round, VC firm Z47, which was earlier known as Matrix Partners India, had made a partial exit. Last year, another early investor Zodius Capital reportedly exited the company via a secondary share sale to generate around $100-120 million cash exit on its initial $8 million investment. The stake was reportedly bought by a group of HNIs and family offices.

OfBusiness, co-founded by Ruchi Kalra, Bhuvan Gupta and Asish Mohapatra in 2015, caters to SMEs by providing procurement and financing solutions for raw materials like steel, cement, and chemicals. Over the years, the company has diversified into supply chain financing through its subsidiary Oxyzo and expanded its market share.

The company's consolidated operating revenue grew over 25% in FY24 to Rs 19,296.3 crore from Rs 15,342.6 crore in the previous year. Net profit increased 30% to Rs 603 crore from Rs 463.2 crore.

Published by HT Digital Content Services with permission from VC Circle.