Gurugram-based B2B marketplace OfBusiness has raised 100 crore rupee (US$11.7 million) from Cornerstone Ventures as it prepares for its planned IPO in the second half of 2025.

This funding is part of Cornerstone’s US$200 million second fund, which reached its first close at US$40 million in January 2025.

OfBusiness plans to use the funds to enhance digital adoption and improve financing access for small and medium enterprises (SMEs).

Founded in 2016, the company provides raw material procurement and financing solutions to SMEs in the manufacturing and infrastructure sectors.

To date, OfBusiness has secured approximately US$878 million in total funding from investors, including Alpha Wave Ventures II, Tiger Global, and SoftBank.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ B2B marketplaces experiencing rapid growth trajectory in India

OfBusiness’s latest funding comes amid a significant expansion phase for B2B e-commerce in India, which is projected to reach $200 billion by 2030, up from just $9 billion GMV in the manufacturing sector in 20221.

The company’s growth to $2.5 billion in annual revenues since its 2015 founding exemplifies the sector’s potential, particularly as only 1% of India’s overall B2B market currently engages in e-commerce, expected to rise to 5% by 20302.

OfBusiness stands among prominent players like IndiaMART (connecting 130 million buyers with 7 million suppliers) and Moglix (offering 700,000+ SKUs through 16,000 suppliers), demonstrating the scalability of B2B marketplace models3.

The pre-IPO funding reflects investor confidence in this growth sector, while Cornerstone’s investment through its $200 million second fund signals continued institutional interest in B2B platforms focused on SME enablement.

2️⃣ Digital transformation of SMEs drives investment opportunities

OfBusiness’s focus on “driving digital adoption” for SMEs addresses a critical market need, as Indian small businesses increasingly recognize they cannot afford to ignore digitalization despite traditional hesitance due to awareness gaps and perceived complexity4.

The timing is strategic, as 2025 is poised to be a breakthrough year for SME digitalization, driven by advancements in AI, cloud technology, and enhanced connectivity alongside supportive government initiatives like Digital India and ONDC5.

The MSME sector, already contributing approximately 31% to India’s GDP and 43% of exports, is projected to grow from 6.3 crores to approximately 7.5 crores by 2025, representing an expanding addressable market for B2B platforms6.