Tuesday, 20 June 2023, Bengaluru, India
Small and medium-sized businesses (SMEs) can develop their operations, sales, and profits with the help of credit solutions and loans from Oxyzo, the lending division of the industrial products and services procurement platform OfBusiness. In India, the company collaborates with over 10,000 SMEs.
According to its financial statement, interest on granted loans accounted for 94.1% of the company’s total operational revenue, which increased by 79.8% to Rs 537 crore in FY23. While it also made Rs 9 crore from other operating activities, platform fees and commission revenue increased by 79.1% to Rs 24 crore in FY23.
The company achieved the Rs 4,800 crore mark for its loan book during the most recent fiscal year and intends to practically quadruple that amount to Rs 8,200 crore in FY24. Significantly, Oxyzo kept its GNPA (gross non-performing assets) below 1% throughout the year.
For the fintech unicorn, the finance cost (interest) accounted for 59.3% of the total costs. These costs rose 28.2% to Rs 183.3 crore in FY23 from Rs 143 crore in FY22, according to data.
During the previous fiscal year, spending on employee benefits increased by 70.3% to Rs 78 crore. This includes non-cash ESOP charges totaling Rs. 17.1 crores. Additionally, Oxyzo recorded an impairment on financial instruments of Rs 27.7 crore, a 2X increase from Rs 13.7 crore in FY22.
Final results showed that Oxyzo’s yearly spending increased by 41.7% to Rs 309 crore in FY23 from Rs 218 crore in FY22. The fact that Oxyzo was able to control its spending in FY23 is evident from the company’s profit, which increased 2.8X to Rs 197.3 crore. In FY22, it made Rs 69.33 crore in profits.
During FY23, Oxyzo’s cash outflows from operations increased 67% to Rs 1,870 crore. Its ROCE and EBITDA margin both improved to 78.07% and 19.19%, respectively. In FY23, Oxyzo invested Re 0.54 to generate 1 rupee in operational income per unit.
The goal of Oxyzo is to offer a broad range of services, from capital markets to loans. In addition, it widened its clientele beyond SMEs to include microbusinesses, mid-sized corporations, and financial institutions. The company plans to invest in and expand supply chain platforms, debt capital markets, and co-lending partnerships.
Through its investment in ZIEL Financial Technologies, which has a sizable network of over 75 branches and a presence in Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, and Punjab, the business increased its micro-enterprise lending categories.
Following its $200 million first external investment round in the final quarter of FY22, Oxyzo became a unicorn. Norwest Venture Partners, Matrix Partners, Creation Investments, Tiger Global, and Alpha Wave all participated in leading the round.
Oxyzo is a perfect example of an opportunistic success story because it capitalized on a chance that its promoters recognized early on and spun off as a separate company. In hindsight, the company also benefited from a banking sector that was completing a protracted clean-up and consequently let down many of its clients in categories that Oxyzo currently serves.
[Source of Information: entrackr.com]
