This debt comes as an extension to the existing Rs. 50 crore working capital limit the company has with the bank.
Working towards the redundancies experienced by SMEs in core sectors such as manufacturing and infrastructure, OfBusiness aims to leverage the funds to further expand clusters and deepen its reach to encompass a larger number of MSMEs operating in the country who are underserved by the current banking system.
"When it comes to getting secured and unsecured credit or cost-effective raw material procurement, SMEs are fully dependent on informal channels and local distributors. With an NBFC license and right cost of capital through our debt lines, we are bundling innovative lending and procurement solutions to address growing needs of SMEs in the country," said co-founder and CEO, OfBusiness, Asish Mohapatra.
Through its seamless in-house technology, OfBusiness combines financing and fulfilment; two very different operating models.
At present, OfBusiness has built a strong base across the key industries including manufacturing (auto, power, engineering, capital goods, solar) and infrastructure with monthly disbursals worth Rs. 50+ crore with an NPA of less than one percent and line of sight to profitability from the next fiscal year. (ANI)