New Delhi, March 2 -- Oxyzo Financial Services Ltd, the non-bank lending arm of B2B commerce platform OfBusiness, has entered the fund management space with the launch of a Rs 500 crore ($54.5 million) performing credit fund, seeking to tap into India's burgeoning private credit market amid rising demand for alternative financing options.
Oxyzo Investment Manager Pvt Ltd is the investment manager for Oxyzo Investment Trust and oversees Oxyzo Credit Fund I, a Category II alternative investment fund registered with the Securities and Exchange Board of India (SEBI), according to the firm's website.
The new entity is backed by Mumbai-listed Tourism Finance Corporation of India Ltd (TFCI), which has pledged up to 5% of the fund's total corpus, according to a stock exchange filing.
The fund seeks to provide secured lending to mid-sized, investment-grade companies across sectors, providing capital for expansion, acquisitions, working capital, bridge financing and other short-term needs.
Oxyzo, founded in 2016 by Ruchi Kalra and Asish Mohapatra as a technology-enabled non-banking financial company (NBFC), specializes in supply chain financing for small and medium enterprises (SMEs) in manufacturing and infrastructure.
It achieved unicorn status in 2022 after raising $200 million in a Series A round led by Alpha Wave Global and joined by Tiger Global Management, Norwest Venture Partners and others. VCCircle reported last year that the company was looking to raise Series B funding.
The company reported operating revenue of Rs 1,207 crore in fiscal 2024-25, up from Rs 903 crore the prior year, with net profit climbing to Rs 340 crore from Rs 291 crore. Assets under management grew to Rs 9,236 crore by year-end.
This foray into asset management diversifies Oxyzo beyond its core NBFC operations, where it has disbursed over $2 billion in loans to date. It plans to scale its assets under management to approximately Rs 3,000 crore over the next four to five years.
Led by Kalra as CEO and chief financial officer, alongside co-founder Mohapatra and chief sales officer Vasant Sridhar, Oxyzo emphasizes data-driven lending and ethical practices. The parent OfBusiness, last valued at over $5 billion, is gearing up for a potential $1 billion initial public offering later this year, which could further bolster Oxyzo's growth ambitions.
With a focus on structured credit, the fund aims to deliver competitive risk-adjusted returns while prioritizing investments in environmentally sustainable and ESG-compliant businesses. An independent advisory committee has been established to manage potential conflicts of interest, ensuring robust governance.
Published by HT Digital Content Services with permission from VC Circle.