OfBusiness, a B2B marketplace, has expanded its operations into the food processing industry through the acquisition of Koeleman India, a subsidiary of Koeleman Foods International based in the Netherlands. The agreement involves the purchase of the entire 100% stake in the company.
According to ET’s report, the agreement has an estimated worth of approximately $10 million.
Koeleman India, located in Bengaluru, operates a food processing facility in Narsapura, Karnataka. The company specializes in processing various fruits and vegetables including gherkins, olives, and baby corn, among others. Additionally, it serves as a supplier of these products to prominent food corporations in the United States, Europe, and Australia.
Through the acquisition, OfBusiness will obtain access to Koeleman India’s food processing plant and the company’s export markets.
“The Indian food processing industry is witnessing many transactions in the branded and private label space, and this transaction signifies the growing appetite among large groups in expanding their presence in this high-growth segment,” Sreeraj Krishnamoorthy, vice president of Singhi Advisors, said.
The Koeleman Group received advisory services from Global Investment Bank Limited for this transaction.
OfBusiness was established in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta, and Nitin Jain. The company primarily deals in purchasing raw materials, with a particular emphasis on agriculture and construction materials, for small and medium-sized enterprises (SMEs) throughout India. OfBusiness is supported by a number of investors, including SoftBank, Tiger Global, Norwest, Zodius, and Matrix Partners.
In addition to procuring raw materials for SMEs, OfBusiness offers cash-flow based financing to these businesses through its financial division, Oxyzo. In March of last year, Oxyzo achieved unicorn status.
OfBusiness saw a significant increase in its net profit in FY22, with a year-on-year (YoY) rise of 3.6X to INR 201.11 crore. The company’s revenue from operations also experienced substantial growth, increasing more than four-fold to INR 7,139 crore during the fiscal year that ended in March 2022.
OfBusiness has launched a mobile app that aims to onboard small, medium, and micro enterprises (SMEs), traders, farmers, and distributors. According to Nitin Jain, one of the Co-Founders of OfBusiness, the app provides information on raw material prices and industry news, thereby reducing market opacity.