Z47 Targets Massive $200 Million Stake Sale in IPO-Bound OfBusiness, Signaling Valuation Benchmark

Z47 Targets Massive $200 Million Stake Sale in IPO-Bound OfBusiness, Signaling Valuation Benchmark​

Venture capital firm Z47 (formerly Matrix Partners India) has initiated a significant secondary sale of its stake in OfBusiness, a rapidly growing online business to business (B2B) commerce platform. This move comes as the B2B giant prepares for an anticipated Initial Public Offering (IPO).

Industry sources informed Moneycontrol that Z47 is actively looking to unlock value through this pre-IPO transaction. The firm reportedly aims to raise around $200 million from the sale of its shares in OfBusiness.

The proposed transaction is being advised by investment bank Kotak Mahindra Capital. While the exact quantum of the stake and the target valuation remain unconfirmed, sources suggest that this deal is intended to set a notable market valuation benchmark for the platform.

Z47’s Stake in OfBusiness Under Scrutiny​

Z47 currently holds a 10.8 per cent stake in OfBusiness. The firm has been associated with OfBusiness since its founding, having led the initial round of funding back in 2016. This history gives Z47 a key position in monitoring and capitalizing on the company's growth trajectory.

The decision by Z47 to engage in a secondary sale indicates a strategic shift toward de-risking while benefiting from OfBusiness’s immense scale as it approaches its listing date.

Financial Standing of B2B Commerce Giant OfBusiness​

As per data available on Tracxn, OfBusiness registered a post-money valuation of $5 billion as of April 16, 2025. The platform reported robust financials for FY24-25, registering Rs 22,497 crore in revenue and Rs 597.1 crore in profit.

OfBusiness’s investment backing includes major players such as Alpha Wave Global (holding 16.3 per cent), Creation Investments (11.7 per cent), Softbank (9 per cent), and Norwest Venture Partners (8 per cent).

Expanding Vertical Integration and IPO Preparations​

Founded in 2015, OfBusiness began its journey as a financing and aggregating company before establishing itself as one of India's leading B2B commerce platforms across metals, chemicals, agri-products, and apparel.

The platform has pursued an aggressive strategy of vertical consolidation to secure full ownership across its four core verticals ahead of the planned listing. This strategic move includes integrating manufacturing capabilities.

In addition to its B2B offerings, OfBusiness has expanded into private labeling and contract manufacturing. This diversification aims to enhance profitability, maintain competitive pricing, and improve delivery timing for clients.

The commitment towards growth is evident as a separate entity in the ecosystem, Zetwerk, filed confidentially for an IPO. The B2B manufacturing technology firm, Zetwerk, is reportedly aiming to raise up to Rs 4,200 crore ($450 million) through its own listing process.