Fintech unicorn Oxyzo, the lending arm of OfBusiness, has reported a substantial increase in its consolidated net profit for the financial year 2023-24 (FY24). The company’s profit surged 47% to INR 290 crore, up from INR 197.5 crore in the previous fiscal year. This growth was fueled by a significant rise in operating revenue, which jumped 59% to INR 903.3 crore, compared to INR 569.9 crore in FY23. Including other income, Oxyzo’s total revenue rose 58.5% to INR 904.1 crore from INR 570.4 crore in the previous year.
Founded in 2016 by Ruchi Kalra and Asish Mohapatra, Oxyzo specializes in providing loans to small and medium-sized enterprises (SMEs) in the manufacturing and contracting sectors. The company has seen impressive growth in its financial performance, largely due to an increase in B2B loan disbursals. As of FY24, Oxyzo’s assets under management stand at $350 million.
Financial Performance Highlights
Oxyzo’s financial performance in FY24 reflects robust growth in both revenue and profit. The company’s operating revenue of INR 903 crore represents a 58% year-on-year increase, primarily driven by the rise in loan disbursements. Interest received from loans constituted 96% of the total operating revenue, amounting to INR 866 crore, a 61.3% increase from the previous year. The remaining revenue came from fees and commissions, which grew 50% to INR 36 crore.
Increased Expenditures
Alongside revenue growth, Oxyzo also experienced a significant rise in expenditures. Total expenses increased by 66.3% to INR 514 crore in FY24, up from INR 309 crore in FY23. The largest cost component was finance costs, which surged 73.2% to INR 317 crore, making up 61.67% of the overall expenditure. Employee benefit expenses also rose by 48.7% to INR 115 crore, reflecting the company’s investment in its workforce.
Strategic Expansion
Oxyzo’s strategic focus on providing cash flow and working capital financing for SMEs in sectors such as manufacturing and sub-contracting has been instrumental in its growth. The company’s innovative credit solutions have enabled it to serve a growing number of SMEs and startups, driving its financial success.
The significant increase in both revenue and profit highlights Oxyzo’s strong market position and effective business model. The fintech unicorn’s ability to scale its operations and maintain profitability amidst rising costs underscores its robust operational efficiency and strategic vision.
Future Outlook
Looking ahead, Oxyzo plans to continue expanding its reach and enhancing its service offerings to further solidify its position in the fintech sector. With a strong financial foundation and a growing portfolio of clients, the company is well-positioned to capitalize on emerging opportunities in the SME lending market.