Oxyzo, a leading fintech unicorn and the financial arm of OfBusiness, has announced a remarkable surge in its consolidated net profit, reflecting its strong performance in the financial year 2023-24 (FY24). The substantial increase in profit underscores the company’s strategic focus on providing financial solutions to SMEs in the manufacturing and contracting sectors.
Financial Performance
According to the financial statements released by Oxyzo, the company witnessed a significant uptick in its operating revenue, soaring by 59% to INR 903.3 Cr in FY24 from INR 569.9 Cr in the previous fiscal year. Including other income, the startup’s total revenue surged by 58.5% to INR 904.1 Cr in FY24.
Expenditure Analysis
While Oxyzo recorded impressive revenue growth, its total expenditure also witnessed a substantial increase, growing by 66% to INR 514.2 Cr in FY24 from INR 309.4 Cr in the preceding year. The breakdown of expenditure reveals key areas where the company directed its resources.
Finance Cost
As a lending-focused startup, finance cost emerged as the largest expense for Oxyzo in FY24. The company’s finance cost surged by 73% to INR 317.3 Cr from INR 183 Cr in the previous year, reflecting its expanding lending operations and associated financial activities.
Employee Benefit Expenses
Employee benefit expenses also witnessed a notable increase, standing at INR 115.5 Cr during the year under review, marking a 73% rise from INR 183.3 Cr in FY23. This significant investment in human capital underscores Oxyzo’s commitment to talent acquisition and retention amidst its rapid expansion.
Business Diversification and Expansion
Oxyzo has been actively diversifying its offerings in the B2B financial services space, ranging from lending to capital markets. The company has expanded its customer base to include micro, small-medium enterprises (MSMEs), mid-corporates, new economy entities, and financial institutions.
Micro-Enterprise Lending Segment
In a strategic move, Oxyzo ventured into the micro-enterprise lending segment through its investment in ZIEL Financial Technologies. ZIEL operates a vast network of over 75 branches across key regions in India, including Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, and Punjab. This expansion underscores Oxyzo’s commitment to catering to the diverse financial needs of small businesses across the country.
Tech-Enabled Solutions and Market Penetration
Oxyzo leverages its extensive data warehouse, comprising disbursed loans totaling $2.6 Bn across 40K+ nodes, to develop innovative tech-enabled solutions. These solutions aim to address the significant under-penetration of formal credit in India’s broader economy, thereby fostering financial inclusion and economic empowerment.
Achievements and Recognition
With an impressive asset under management (AUM) of $360 Mn and top ratings from leading credit rating agencies such as ICRA and CARE, Oxyzo has firmly established itself as a prominent player in the fintech space. The company’s entry into the unicorn club in March 2022, following a successful funding round of $200 Mn, further validates its market position and growth trajectory.
