India, Oct. 30 -- OfBusiness is heading for the stock market with a business that earns most of its revenue in one place and most of its profits in another. Commerce, which spans raw-material trading, manufacturing and apparel, brings in almost all its sales. Yet its lending business, led by Oxyzo, contributes more than half its segment profits despite being a fraction of commerce's size. Ahead of the IPO, the question is whether commerce can earn more from its scale, or whether lending will keep carrying the profits.

The startup began its journey by helping small and medium enterprises buy raw materials and access working capital. Over the past decade, it has gone from sourcing steel and chemicals for manufacturers to making some of tho...