Oxyzo Financial Services, a lending subsidiary of Gurugram-based B2B commerce startup OfBusiness, reported a 33.6% increase in operating revenue, reaching 1,207 crore rupee (US$145.3 million) for the fiscal year ending March 2025.

This growth was primarily driven by a 32% rise in interest income. The company recorded a net profit of 339.1 crore rupee (US$39.69 million), up 16.7% from 290.5 crore rupee (US$34.02 million) in the previous fiscal year.

Interest income from loan disbursements constituted 1,140.6 crore rupee (US$133.56 million), or 95% of its operating revenue. The remainder was generated from fees and commissions.

Founded in 2015, Oxyzo is majority-owned by OfBusiness, which operates an e-commerce platform for sourcing raw materials across various sectors, including steel, chemicals, and textiles.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ NBFCs outpacing traditional lenders in specialized financing segments

Oxyzo’s 33.6% revenue jump significantly outperforms the broader NBFC sector’s already impressive 19% year-on-year growth in FY241.

This performance comes amid improving asset quality across NBFCs, with the industry’s Gross Non-Performing Assets ratio improving to 2.70% (a reduction of 84 basis points)1.

The company’s strong profit growth reflects how specialized lenders are capturing market share in the expanding alternative lending space, which is projected to grow 26.3% annually to reach $9.51 billion in 20242.

Oxyzo’s growth is part of a larger trend where digital-first financial services companies are transforming India’s lending landscape, contributing to the projected expansion of the alternative lending market to $18.24 billion by 20282.

The company’s focus on B2B lending aligns with broader market trends, as the B2B payments sector in India continues to grow at a CAGR of 8.1%, supported by government initiatives promoting digital financial solutions3.

2️⃣ Commerce-integrated lending models gaining traction in India’s B2B ecosystem

Oxyzo’s business model, providing credit facilities to customers of its parent company OfBusiness, exemplifies the growing integration of commerce and financial services in India’s B2B space.

This approach, where lending is embedded directly into commerce platforms, represents a significant evolution in how businesses access capital, part of the embedded finance trend transforming India’s fintech landscape4.

The synergy between OfBusiness’s commerce platform and Oxyzo’s lending operations creates efficiency advantages in customer acquisition and risk assessment that traditional lenders cannot easily replicate.