OfBusiness, a non-banking financial company that offers lends to various small and medium companies, has raised INR 250 crore ($ 34 million) in a Series D round led by the growth investment firm Norwest. Falcon Edge Capital and Matrix Partners, OfBusiness’ existing investors also participated in the round.
The development is an indication of Norwest’s high expectation from the India market. The company is planning to make its investments double-fold while looking for opportunities in various sectors of the Indian market.
Norwest’s India head and managing director Niren Shah said, “We are always looking to make investments in robust and differentiated businesses and Of Business has been a pioneer in the lending space, which uses its B2B fulfillment platform, to extend purchase financing to small and medium-sized enterprises.” He also added that over the years, OfBusiness has built a decent progress in technology-based small and medium-sized enterprises lending to the manufacturing and core segment.
Norwest Venture’s annual investment in India has been $75 million in the last few years. Now it will write a minimum cheque of USD 7-8 million that is expected to go up to USD 50 million. The venture invests in tech sector that includes the recent Swiggy investment. The firm is trying to make balance between investment in growth equity and the venture space.
OfBusiness was founded in the year 2015 by Asish Mohapatra, who has been a former director at Matrix Partners, Ruchi Kalra, former McKinsey partner, and Bhuvan Gupta, former Vice President of engineering at Snapdeal.