Cornerstone Ventures makes ₹100 crore investment in OfBuisness

Cornerstone Ventures, a venture capital (VC) firm announced its first investment of Rs. 100 crore from its new fund in OfBusiness, a B2B commerce platform that helps small and medium enterprises. The investment comes from its new fund which targets to raise $200 million.

Abhishek Prasad, Managing Partner at Cornerstone Ventures, said, “This fund has a hybrid strategy to back both early-growth companies (about 70 per cent of the corpus) and late-stage scaled B2B businesses (about 30 per cent of the corpus). Our goal is to serve as an end-game partner through scale-up, consolidation, and eventual exit or IPO. OfBusiness is our first investment in the late-stage strategy and one of the opportunities we have been excited about for a while now. Delighted to become a part of its journey as the leading commerce and supply chain platform for Indian SMEs across sectors.”

OfBusiness is a commerce and supply chain financing platform that offers access to raw materials, suppliers, transparent pricing and financing solutions to small and medium-sized enterprises (SMEs). They also use AI for optimized procurement and risk management, while its financing arm, Oxyzo, provides data-driven, non-collateral loans catering to SME needs.

Founded in 2015 by Asish Mohapatra, Ruchi Kalra, and Bhuvan Gupta, they have a network of over 45,000 suppliers and 1.3 million SMEs, with a focus on key sectors like steel, chemicals, and textiles. According to Tracxn, they have a current valuation of $2.84 billion. They saw a 25.7 per cent rise in operating revenue in FY 24 to ₹19,296.27 crore. Their consolidated net profit also increased by 30 per cent to ₹602.97 crore from ₹463.25 crore.

Cornerstone Ventures announced the first close of their second fund at $40 million in January this year. It saw participation from domestic investors including new limited partners (LPs) across High-Net-Worth Individuals (HNIs), family offices, corporates, and other institutions.

The company had launched its first fund in 2018 which backed 21 companies including Watch Your Health, Nitro and Dopplr.

(With inputs from BL intern Nethra Sailesh)

Published on April 16, 2025