OfBusiness plans to invest Rs 3k cr in next 3 yrs to ramp up steel biz

OfBusiness, a b2b commerce and fintech startup, is looking to invest about Rs 3,000 crore into doubling its steel business to more than 4MTPA in the next three years.

The company has acquired three steel firms -- SMW Ispat, Shree Sidhbali Ispat and Noble Steel -- in the past and the expansion is lined up in all the three companies.

"We are looking forward to investing close to USD 350 million, about Rs 3,000 crore, to scale up our steel business from the current 2 million tonne to more than 4 million tonne in the next 3 years. This is also expected to sharply increase the sector EBITDA to 2.5x from the current level. The funding will be a combination of internal accruals and debt & equity financing," Co-Founder and CEO Asish Mohapatra said.

The company supplies steel to companies such as L&T, Adani, J Kumar, Dilip Buildcon, Ashoka Buildcon.

OfBusiness also plans to get into new categories such as pre-painted galvanised iron (PPGI) adding onto thermo-mechanically treated (TMT) bars and structures.

The company is also planning a USD 1 billion IPO in FY26.

"We have been continuously thriving for expansion of our business and be part of India's tremendous growth journey of USD 10 trillion economy. To support our expansion plans we are looking forward to our USD 1 billion IPO in FY2026," Mohapatra said.

OfBusiness has been into the business of steel, non-ferrous metals, bitumen, food products, as well as finished goods such as apparel and footwear, supplying them to its domestic and international clients.

Last year, OfBusiness delivered about 170,000 shipments across the country, enabling about 13,000 businesses to grow and thrive.