Oxyzo, the SME-focused non-banking financial company (NBFC) and financial services arm of OfBusiness, reported an 11% increase in net profit for the fiscal year FY26, reaching ₹375.5 crore. This growth, from ₹339.2 crore in the previous fiscal year, underscores the company’s robust financial health amid a competitive fintech landscape. Operating revenue also surged by 23% to ₹1,488.8 crore, driven primarily by a similar increase in interest income.
### Oxyzo’s Expanding Financial Footprint
Founded in 2016 by Ashish Mohapatra, Bhuvan Gupta, Ruchi Kalra, and Vasant Sridhar, Oxyzo has carved a niche in providing loans to small and medium enterprises (SMEs) in the manufacturing and contracting sectors. The company’s total assets grew 28% year-on-year to ₹11,822 crore, with a loan book of ₹10,545 crore. The firm maintains a strong capital position, with a net worth of ₹3,327 crore and a capital adequacy ratio of 29%. A diversified borrowing profile across banks and other financial institutions, including State Bank of India and Kotak Mahindra Bank, supports its operations.
In FY26, Oxyzo also completed strategic moves such as the acquisition of GoldenPi Technologies, a debt investment platform, for ₹42.4 crore. This acquisition aligns with Oxyzo’s goal to expand its financial ecosystem for SMEs. Additionally, the company undertook internal restructuring by merging with its quick loans subsidiary, Z-First, to streamline operations.
### Competitive Landscape and Funding Environment
The fintech sector in India is witnessing rapid growth, with many players vying for market share in SME lending. Oxyzo’s growth in revenue and profit places it in a strong position against competitors like Lendingkart and Capital Float. The company’s ability to maintain a low gross non-performing asset (NPA) ratio of 0.74% is a significant advantage, reflecting effective risk management in a sector known for its volatility.
The broader funding environment in India remains vibrant, with fintech startups continuing to attract substantial investments. In FY26, Oxyzo raised ₹900 crore through non-convertible debentures, a significant increase from ₹553 crore in the previous year. This influx of capital supports Oxyzo’s expansion plans and strengthens its lending capabilities.
### Implications for India’s Startup Ecosystem
Oxyzo’s performance and strategic initiatives highlight the potential for fintech firms to scale successfully within India’s dynamic startup ecosystem. The company’s focus on SMEs, a critical driver of India’s economic growth, positions it well to capitalize on the increasing demand for accessible financial services. Oxyzo’s growth can serve as a blueprint for other fintech startups aiming to establish a sustainable business model in the competitive financial services industry.
The company’s efforts to build a comprehensive financial ecosystem for SMEs could inspire similar moves by other startups, potentially leading to more collaborations and acquisitions in the sector. This trend may encourage investors to continue supporting fintech innovations, further fueling the sector’s growth.
As Oxyzo consolidates its operations and expands its financial offerings, stakeholders will be keenly watching its next moves. For investors, the company’s success may signal a promising opportunity in SME-focused fintech solutions. Founders and engineers in the sector should monitor Oxyzo’s integration strategies and technological advancements, as they could set new standards for efficiency and customer engagement in the industry.
