Oxyzo Financial Services, a B2B fintech unicorn backed by Tiger Global, has reported significant financial growth for the fiscal year ending March 2024. The company recorded a remarkable 58.4% year-on-year revenue increase, reaching Rs 903 crore, while its profits surged by 47% to nearly Rs 300 crore, nearing a significant threshold.
Oxyzo, the lending arm of the industrial goods and services procurement platform OfBusiness, specializes in providing credit solutions and loans to small and medium enterprises (SMEs) and startups. The company’s revenue from operations witnessed a substantial rise, climbing to Rs 903 crore in FY24 from Rs 570 crore in the previous fiscal year.
The majority of Oxyzo’s operating revenue, accounting for 96%, stemmed from interest received from loan disbursements, which grew by 61.3% to Rs 866 crore in FY24. Additionally, fees and commissions contributed to the remaining income, increasing by 50% to Rs 36 crore during the same period.
Finance costs emerged as the largest cost center for Oxyzo, constituting 61.67% of its overall expenditure, which soared by 73.2% to Rs 317 crore in FY24. Moreover, the company witnessed a 48.7% growth in employee benefits and a 66.3% increase in total expenditure, primarily driven by expenses on legal, professional, advertising, technology, and other overheads.
Despite the surge in expenditure, Oxyzo achieved a notable 47% increase in its PAT (profits after tax) to Rs 291 crore in FY24, up from Rs 198 crore in FY23. The company’s efficient financial management is evident from its unit-level expenditure of Rs 0.57 to earn a rupee in FY24.
Oxyzo boasts an approximate net worth of Rs 2,600 crore post-FY24, with a post-tax return on assets (RoA) of 4.5% and a gross non-performing asset (NPA) of 1.02%. Looking ahead, the company plans to further invest and expand its debt capital markets platforms for enterprise clients.
Having raised approximately $200 million in 2022, Oxyzo entered the unicorn club after its Series A round led by Alpha Wave and Tiger Global. With OFB group and promoters holding 74.5% and Alpha Wave being the largest external stakeholder with 7.4%, Oxyzo is well-positioned to capitalize on its rising profitability and ambitious goals for the debt capital markets platform.
Source: Entrackr
