Oxyzo Financial Services: Transforming SME Financing With Smart, Tech-Driven Solutions

Introduction To Oxyzo Financial Services Limited

Oxyzo Financial Services Limited (“Oxyzo”) is a tech-driven Non-Banking Financial Company (NBFC) that provides financial solutions to small and medium-sized enterprises (SMEs) in India. Founded in 2016 by Asish Mohapatra and Ruchi Karla, the company is headquartered in Gurugram and operates across 20 states. 

Oxyzo offers a comprehensive financing platform, specializing in working capital loans and term loans that help businesses in manufacturing, subcontracting, and services sectors manage their financial needs efficiently. By leveraging technology and data analytics, Oxyzo simplifies credit access for SMEs, enabling them to secure funding quickly and grow their businesses.

The company is a subsidiary of OfBusiness Tech Private Ltd., which holds a 70% stake in Oxyzo. This parent-subsidiary relationship gives Oxyzo a strategic advantage by integrating financing solutions with a tech-enabled raw material procurement platform. As of June 2024, Oxyzo had a net worth of INR 2,676 crore, a profit after tax (PAT) margin of 33.4%, and an assets under management (AUM) exceeding INR 7,800 crore. With a diversified borrower profile and a workforce of 438 professionals, the company continues to play a key role in supporting India’s growing SME sector by providing accessible and efficient financial solutions.

Board Of Directors Of Oxyzo Financial Services Limited

As of the latest available information, the Board of Directors of  Oxyzo financial services Ltd. comprises:

• Ruchi Kalra – Whole-time Director and Chief Financial Officer
• Vasant Sridhar – Director
• Asish Mohapatra – Director
• Praveen Kumar Bhambani – Independent Director
• Rohit Kapoor – Independent Director
• Sathyan David – Independent Director

These individuals bring a wealth of experience and expertise to the company's leadership. 

Source: Oxyzo¹

Products Offered By Oxyzo 

Oxyzo Financial Services Limited offers a diverse range of financial products tailored to meet the unique needs of businesses, particularly small and medium-sized enterprises (SMEs). Below is an overview of each product:

1. Working Capital Financing
Oxyzo provides various working capital solutions to help businesses manage their short-term financial requirements:

• Purchase Finance: Enables businesses to procure raw materials at optimal prices by offering upfront payment solutions, thereby improving cash flow and operational efficiency.
• Work Order Finance: Assists businesses in executing tenders and contracts by providing the necessary funds to commence and sustain projects until completion.
• Invoice Discounting: Allows businesses to unlock capital instantly by converting outstanding invoices into immediate cash, enhancing liquidity.
• Vendor Finance: Strengthens supply chains by offering financial support to vendors, ensuring timely delivery of goods and services.
  Working Capital Term Loan: Caters to short-term financial needs with flexible repayment options, supporting day-to-day business operations.

2. Term Lending
For businesses seeking long-term financing, Oxyzo offers:

• Business Loan: Facilitates business expansion plans by providing funds for scaling operations, entering new markets, or other growth initiatives.
• Machinery Finance: Supports capital expenditure needs by financing the purchase of machinery and equipment, aiding in technological upgrades and capacity enhancement.
• Loan Against Property: Allows businesses to leverage their property assets to secure loans for various purposes, offering a cost-effective financing option.

3. Corporate Financing
Designed for emerging corporates, Oxyzo's corporate financing solutions include:

• Growth Capital: Provides funds to optimize supply chains, invest in new projects, or support other strategic initiatives aimed at business growth.
• Special Situation Financing: Offers tailored financial solutions to address unique business circumstances, such as acquisitions or restructuring, ensuring stability and continuity.

4. Supply Chain Financing
To optimize cash flows within the supply chain, Oxyzo offers:

• Vendor Financing: Ensures suppliers receive timely payments, enhancing the efficiency and reliability of the supply chain.
• Revenue-Based Financing: Provides funding based on future revenue projections, offering a flexible repayment structure aligned with business performance.
• Sales/Receivables Bill Discounting: Enables businesses to convert sales receivables into immediate cash, improving liquidity and working capital management.

Oxyzo's comprehensive suite of financial products is designed to support businesses at various stages of their growth, ensuring they have access to the necessary capital to thrive in a competitive environment.

Also Read: Types Of Financial Planning and Its Importance

Innovation And Technology At Oxyzo

Oxyzo Financial Services Limited distinguishes itself through a combination of tailored solutions, technological innovation, and exceptional customer service. By offering customized and flexible financial products, Oxyzo ensures that each client's unique needs are met, allowing businesses to adapt and grow in a dynamic market environment.

Leveraging advanced technology, Oxyzo enhances the efficiency and effectiveness of its financial services, providing clients with seamless and modern solutions. This tech-driven approach is complemented by prompt and responsive customer service, ensuring that every interaction is handled with attentiveness and a focus on delivering practical solutions.

Key Strengths Of Oxyzo Financial Services

1. Strong and Steady Growth in Assets
Oxyzo has consistently grown its Assets Under Management (AUM) over the years. As of June 2024, the company’s AUM reached INR 7,800 crore, which is three times higher than what it was in FY’22. This steady increase highlights Oxyzo’s ability to expand its business and manage funds effectively.

2. Strong Capital Position
Oxyzo has a solid financial foundation, thanks to capital investments from its parent company, OFBusiness Tech, and well-known private equity investors. The company raised INR 1,962 crore, including INR 1,528 crore between March and September 2022, from well-regarded investors. As a result, its net worth grew from INR 2,295 crore in March 2023 to INR 2,585 crore in March 2024. This growth is further supported by the company’s own profits.
The company's debt-to-equity (D/E) ratio increased to 1.7x in 2024 from 1.2x in 2023, but it is expected to stay below 4x. Additionally, OFBusiness Tech has committed to providing financial support of INR 350-500 crore whenever needed, ensuring that Oxyzo remains financially strong.
3. Strong and Trusted Investors
Oxyzo is backed by some of the most well-known global investors, including Alpha Wave, Creation Investments, Matrix Partners, Norwest, and Tiger Global. These investors not only provide financial stability but also offer strategic guidance, making Oxyzo a trusted name in the market.
4. High-Quality Loan Portfolio
Oxyzo has been able to maintain strong asset quality since FY’22. The company's Gross Non-Performing Asset (GNPA) ratio and Net Non-Performing Asset (NNPA) ratio have remained low and stable, with a GNPA of 0.9% and NNPA of 0.4% as of June 2024. This means that only a small portion of its loans are at risk of default, showing that Oxyzo lends responsibly and manages risks well.
5. Outstanding Loan Repayment Rate
Over the last 12 months, Oxyzo has maintained an exceptional loan collection efficiency of 99.9%. This means nearly all borrowers are repaying their loans on time, which helps keep bad loans (NPAs) to a minimum.
6. Strong Partnerships with Leading Banks and NBFCs
Oxyzo has built strong relationships with major banks and financial institutions, making it a trusted lending partner. Some of the banks and NBFCs Oxyzo works with include HDFC Bank, HSBC, SBI, ICICI, Bajaj Finserv, TATA Capital, and SIDBI. These partnerships help Oxyzo expand its reach and provide better financial services to businesses.
7. No Risk of Cash Flow Mismatch
The company maintains a strong financial structure with no asset-liability mismatch in the near future. This means Oxyzo has enough funds to meet its obligations, ensuring smooth business operations without any financial stress.
These strengths make Oxyzo Financial Services a stable, well-funded, and reliable financial institution, helping businesses across India grow with access to smart, technology-driven financing solutions.

Financial Snapshot Oxyzo 

Source: audited financials, credit rating reports

To arrange the capital, Oxyzo Financial Services Ltd. also offers corporate bonds. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CREDIT ‘A+’ rated bonds of the company that offered fixed returns of up to 10.10%. To invest in similar, rated, regulated and secured fixed-income opportunities sign-up for Grip Invest today and start earning fixed returns:

References:

1. Oxyzo Financial Services Ltd., accessed from: https://www.oxyzo.in/about/team/board-of-directors

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