Revenue was up by 31 percent at Rs 810 crore but the loan book growth slowed to 14 percent against a CAGR of 68 percent during FY21-24
Anand J
April 08, 2025 / 14:41 IST
Oxyzo is backed by business-to-business commerce aggregator OfBusiness, which has a 70 percent stake in the unicorn.
Non-banking financial company Oxyzo has reported a net profit of Rs 263 crore for the first nine months of FY25, up 26 percent from the year ago period.
Revenue was up by 39 percent at Rs 856 crore, data from the company and rating agency ICRA shows.
The company's loan book grew at 14 percent against to a CAGR of 68 percent for the FY21-FY24 period.
The loan book stood at Rs 7,270 crore as of December 31 against Rs 6,600 crore as of March 31, 2024.
“ICRA expects Oxyzo to grow the loan book at 15-20 percent over the medium term. In this context, ICRA believes sharp growth can pose challenges in maintaining the underwriting quality and consequently the asset quality indicators,” the note said.
Related stories
- Should this auto ancillary find a place in your long-term portfolio?
- Dailyhunt parent VerSe Innovation halves EBITDA loss to Rs 710 crore in FY24
Compared to other fintech NBFCs, the company is in relatively stable due to a high ratio of secured loan book portfolio, it said.
“The company’s ability to scale up its secured lending operations profitably, while maintaining healthy asset quality, on a sustained basis would be a credit positive. ICRA draws comfort from the fact that a significant proportion of the portfolio is secured, with the company reporting good asset quality since the commencement of operations,” the note said.
Most of Oxyzo’s loans have a relatively short tenure and a single customer revolves a particular limit multiple times, leading to better seasoning in terms of the cyclicity of the loan book, the note added.
Started in 2017, Oxyzo provides secured and unsecured purchase loans to small and medium enterprises (SMEs) for financing the purchase of raw materials that are used in their core business.
The Gurugram-based unicorn is backed by business-to-business commerce aggregator OfBusiness, which has a 70 percent stake in the startup.
While many fintechs suffer from poor underwriting, ICRA said Oxyzo’s framework is good, as indicated by a low net non-performing asset ratio of around 0.5 percent.
Oxyzo reported consolidated operating revenue of Rs 903 crore in FY24, a growth of around 58 percent from the previous year on rise in B2B loan disbursals. Net profit was up 47 percent at around Rs 290 crore.
Oxyzo was started in 2016 by Asish Mohapatra, Bhuvan Gupta, Ruchi Kalra and Vasant Sridhar as the lending platform of OfBusiness, providing cash flow and matched working capital financing for buying new materials for SMEs in sectors such as manufacturing and sub-contracting.
In 2022, Oxyzo raised $200 million in its Series A raise from Alpha Wave, Tiger Global, Norwest Venture Partners, Matrix Partners, and Creation Investments and became a unicorn, accompany valued at $ 1 billion or more.
Invite your friends and family to sign up for MC Tech 3, our daily newsletter that breaks down the biggest tech and startup stories of the day
DAILY-EVENING
SUBSCRIBE
End your day with a breakdown of the biggest tech and startup stories in your inbox
DAILY-EVENING
SUBSCRIBE
End your day with a breakdown of the biggest tech and startup stories in your inbox
Anand J
first published: Apr 8, 2025 01:10 pm
Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
${res.must_watch_article[0].headline}
`); } if (res.stay_updated) { $(".stay-updated-ajax").html(res.stay_updated); } } catch (error) { console.log('Error in video', error); } } }) }, 8000); })
