Synopsis
The profitable fintech lender is looking to widen its debt-market play through the acquisition of Rainmatter-backed GoldenPi Technologies, an online bond distribution platform.Listen to this article in summarized format
Oxyzo, majority owned by OfBusiness, a SoftBank-backed online provider of raw materials for industrial equipment, had reported a consolidated net profit of Rs 339 crore in FY25.
The company’s revenue from operations grew 23% in FY26 to Rs 1,489 crore, according to its audited financial statements. Profit before tax stood at Rs 505 crore, up from Rs 456 crore a year earlier.
Oxyzo’s performance was driven by interest income, which increased to Rs 1,407 crore from Rs 1,141 crore in the previous year. The financials showed that the lender’s net profit margin moderated to 25.2% from 28.1%, reflecting higher finance costs and operating expenses as the balance sheet expanded.
However, asset quality improved during the year — gross non-performing assets fell to 0.74% from 1.09%, while net NPA narrowed to 0.28% from 0.43%.
Oxyzo, which lends to small and medium enterprises, was spun out of OfBusiness in 2022 and raised $200 million in its first external funding round from various investors, including Tiger Global, Alpha Wave Global, Norwest Venture Partners, Matrix Partners, and Creation Investments, at a valuation of over $1 billion. ET had earlier reported that OfBusiness held around 70% in Oxyzo. The filing also showed that the lender's capital adequacy ratio stood at 28.84% at the end of March, against 33.5% a year earlier.
Beyond lending
The FY26 results come as Oxyzo has been adding adjacent financial services around its core lending platform. The lender said its board had approved the acquisition of Rainmatter-backed GoldenPi Technologies, an online bond distribution platform, to enter the retail fixed-income market. It added that the acquisition would help expand its debt capital market offerings for retail and high-net-worth investors.
In March, Oxyzo entered fund management with a performing credit alternative investment fund, as it looked to build beyond direct lending.
In July 2023, ET reported that the company had set up a debt marketplace for SMEs, placing close to $200 million of structured debt every month with banks, non-bank lenders, corporates, and family offices.
