Oxyzo Financial Services, a Gurugram-based SME-focused non-banking financial company (NBFC), has reported a robust financial performance in the fiscal year ending March 2026. The company achieved a 23% increase in operating revenue, reaching Rs 1,494 crore compared to Rs 1,207 crore in the previous fiscal year. Profit after tax also rose by 10%, amounting to Rs 375 crore, signaling continued growth and stability in its financial operations. This performance highlights Oxyzo’s expanding footprint in India’s financial services sector, especially for small and medium enterprises (SMEs).
### Oxyzo’s Business Model and Growth Trajectory
Oxyzo’s impressive financial results can be attributed to its diversified lending operations and strategic expansion into broader financial services for SMEs. The company’s total assets under management grew by 28% year-on-year to Rs 11,822 crore, with its loan book expanding to Rs 10,545 crore. Oxyzo maintained asset quality with a gross non-performing asset (NPA) ratio of 0.74% and a net NPA of 0.3%. The company’s return on assets (RoA) stood at 3.8%, and it ended the fiscal year with a net worth of Rs 3,327 crore. Its capital adequacy ratio (CRAR) was a strong 29%, supported by a liquidity surplus exceeding Rs 950 crore. Oxyzo’s borrowing profile includes partnerships with major banks and financial institutions, enhancing its capacity to support SME growth.
### Competitive Landscape and Funding Environment
Oxyzo’s success comes amid a competitive landscape where NBFCs are increasingly crucial in bridging credit gaps for SMEs in India. The company’s growth is supported by its status as a unicorn, achieved through a $200 million Series A funding round led by Alpha Wave and Tiger Global. This positions Oxyzo favorably against competitors in the financial services domain, such as Lendingkart and Capital Float, which also focus on SME financing. The broader funding environment in India has been conducive, with investors showing a keen interest in fintech and NBFCs, driven by the sector’s potential to drive financial inclusion and economic growth.
### Implications for India’s Startup Ecosystem
Oxyzo’s performance and strategic initiatives have significant implications for India’s startup ecosystem. By acquiring wealth-tech platform GoldenPi and launching a private credit fund, Oxyzo is not just expanding its financial services but also setting a precedent for other fintech startups to diversify and create comprehensive financial ecosystems. The entry into fund management through Oxyzo Investment Manager Private Limited further underscores the potential for fintech startups to evolve into multifaceted financial entities. This diversification strategy could inspire other startups to explore similar avenues, thereby enhancing the depth and breadth of financial services available to SMEs in India.
Oxyzo’s trajectory points to a promising future with the company poised for further expansion and innovation. With its parent company, OfBusiness, preparing for a $1 billion IPO, stakeholders in the fintech space will be closely watching Oxyzo’s next moves. For founders and investors, Oxyzo’s strategy of diversification and robust financial management offers a blueprint for sustainable growth. The upcoming IPO could unlock new opportunities for investment and expansion in the fintech sector, making it a pivotal development to monitor in the coming months.
