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Oxyzo Reports Impressive FY24 Results Operating Revenue Surges by 59% to Reach Rs 903 Crore, Net Profit Stands at Rs 290 Crore

SUMMARY

Oxyzo, the B2B lending arm of OfBusiness, reported strong financial growth in FY24 with operating revenue up 59% and net profit up 47%. This growth is driven by increased loan volumes and a focus on short-term financing for SMEs within the OfBusiness ecosystem.
Oxyzo operates as a separate entity with a unicorn valuation and a well-managed loan portfolio (low NPA). Their focus on high asset turnover and diversified funding sources positions them for continued success in the B2B lending space.

Oxyzo Financial Services, the B2B lending arm of the unicorn OfBusiness, has emerged as a significant player in its own right. Here's a breakdown of key financials and strategic insights:

Financial Performance FY24:

Operating Revenue: Rs 903 crore (up 59% YoY)
Net Profit: Rs 290 crore (up 47% YoY)
Interest Income: Rs 866 crore (up 61% YoY)
Robust Growth: Oxyzo demonstrates impressive revenue and profit growth, exceeding market expectations.
Strong Interest Income: Significant rise in interest income reflects increased loan volumes and effective portfolio management.
Unicorn Valuation: The recent $200 million funding secured at a unicorn valuation signifies investor confidence in Oxyzo's future.

Company Structure and Strategy:

Spin-off from OfBusiness: Oxyzo operates as a separate entity since March 2022, leveraging the established customer base of OfBusiness.
SME Focus: Oxyzo caters primarily to small and medium enterprises (SMEs) within the OfBusiness ecosystem.
Short-Term Lending: The company offers short-duration loans tailored to the working capital needs of SMEs.
High Asset Turnover: Businesses frequently utilize and repay credit lines, generating higher returns for Oxyzo.

Financial Health and Risk Management:

Net Worth: Rs 2,600 crore signifies a strong financial position.
Gross NPA: 1.02% indicates a well-managed portfolio with low delinquency rates.
Unsecured Loans: 30% of net assets are in unsecured loans, potentially increasing risk but offering higher returns.
Diversified Funding: Oxyzo collaborates with over 40 lenders, mitigating dependence on any single source.

Overall, Oxyzo's impressive growth and profitability position it as a leading B2B lending player. Its strategic focus on the OfBusiness ecosystem, short-term financing, and effective risk management has fueled its success. As Oxyzo expands its loan offerings and geographic reach, it is poised for continued growth in the B2B lending space.