SoftBank-backed B2B e-commerce platform eyes $1B IPO in India
What's the story
OfBusiness, an Indian B2B e-commerce platform supported by SoftBank Group, is preparing for a potential initial public offering (IPO) in the country.
The company's Chief Financial Officer, Bhavesh Keswani, revealed to Reuters that the IPO could be worth up to $1 billion.
He also stated that the firm is nearing the final stages of appointing bankers for this significant financial move.
Bank negotiations
OfBusiness in talks with major banks for IPO management
Keswani disclosed that OfBusiness is currently in discussions with several major banks, including Bank of America, Citi, JP Morgan, and Morgan Stanley. These institutions are being considered to manage the upcoming IPO.
The company aims to list on Indian stock exchanges in the latter half of 2025.
However, none of these banks have responded to Reuters' requests for comment regarding their potential involvement in this deal.
Fundraising expectations
IPO expected to raise between $750 million and $1B
The anticipated IPO is projected to raise between $750 million and $1 billion.
According to Keswani, this amount will comprise around $200 million in new shares, with the remaining funds coming from existing shareholders selling their stocks to new investors.
The CFO further clarified that the proceeds from the IPO would be allocated toward repaying debts, and expanding the company's existing operations.
Stakeholder shares
Stakeholders and valuation
SoftBank Group, a Japanese tech investor, and Tiger Global, a US-based investment firm, collectively own approximately 15% of OfBusiness.
Also, international investment firm Alpha Wave Global holds an 18% stake in the company.
An industry insider revealed that OfBusiness is aiming for a valuation between $6 billion and $9 billion for its upcoming IPO.
However, Keswani did not comment on this projected valuation.
Company growth
OfBusiness's journey and performance amid market trends
Since its inception in 2015 by Asish Mohapatra and Ruchi Kalra, OfBusiness has raised over $800 million from investors.
The company's latest funding round in 2021 valued it at approximately $5 billion.
This IPO announcement comes as India's stock market experiences a surge, outperforming other Asian markets with a 16% increase this year.
Other SoftBank-backed companies like Ola Electric have also recently listed in India.