Lending company Oxyzo enters marketplace business

economictimes.indiatimes.com:

Oxyzo Financial Services, which started as a purchase finance platform to support buyers transacting through B2B marketplace OfBusiness, has entered a new business, acting as an intermediary between lenders and small and medium enterprises (SMEs). In partnership with a clutch of banks, non-banking lenders, corporate houses and family offices, it is placing close to $200 million (Rs 1,630 crore) of structured debt every month on a debt marketplace it has set up for SMEs to avail of funds. Oxyzo earns a commission for this service.

In order to ensure the quality of the borrowers on the platform, Oxyzo has shortlisted them from its existing SME customers who have been doing business with it for seven-eight years, the company’s head of corporate finance Prashant Roy Sharma said. It had earlier been directly funding these customers. “Many of our customers have achieved a scale where they have much broader financial requirements.

Through the debt and capital markets platform the idea is to meet these requirements,” Sharma said. The platform helps SMEs tap the capital market for long-term funds, access supply chain finance solutions from banks and NBFCs and raise working capital.Larger bouquet Currently, Oxyzo is offering around Rs 400-600 crore of debt market funding through non-convertible debentures to the customers on the debt financing platform. The platform takes mid-market SMEs to the capital market, which otherwise was out of bounds to them.