1. Ashish Mohapatra, originally from Orissa, achieved the remarkable feat of making it to IIT Kharagpur without the aid of any coaching, bringing pride to everyone around him. However, he took a bold step by departing from his high-paying consulting role at McKinsey and later as a prominent Venture Capitalist (VC) in August 2015. What he envisioned next was even more audacious.
2. At a time when consumer giants like Amazon and Flipkart were flourishing in India, Ashish aimed to address the unorganized sector of Small and Medium Enterprises (SMEs). Despite skepticism from many, Ashish pressed ahead and founded OfBusiness in 2015. 🚀
3. OfBusiness initially focused on supplying metals and cement to the manufacturing and infrastructure industry, experiencing a robust start with over 20 CR monthly orders and a profit of 30 Lakhs. However, Ashish identified a crucial missing element. 🤔
4. Recognizing that 95% of transactions operated on credit, OfBusiness lacked credit capabilities internally. Ashish understood that without credit, SMEs would be hesitant to engage. To sustain his startup, he needed to secure funding for credit, a process that turned into a daunting challenge for Ashish.
5. Facing rejection from 73 VCs within six months, Ashish encountered difficulty in building conviction on the credit model’s profitability. His lack of credit background became a major hurdle. Despite the setbacks, Ashish persevered.
6. Committing himself to extensive research, he scrutinized the balance sheets of three companies daily for a year. He spent nine months visiting numerous SME offices to understand how to underwrite loans for them. In December 2016, OfBusiness successfully raised 70 CR, led by Zodius Capital. 💸
7. The model gained momentum as OfBusiness reached revenues of 100 CR. The low-interest and collateral-free approach resonated, drastically reducing the SME credit window from 90 days to 72 hours. By 2018, OfBusiness disbursed 100 CR in loans and achieved a revenue of 500 CR. 📉
8. Identifying a gap in the market where credit was available but lacked technological management, Ashish expanded into digital services in 2019. Introducing BidAssist (Government Tender mapping) and ProcureAssist (Vendor management), OfBusiness transformed from a rejected startup to a favored one, raising 500 CR in two years from Norwest, AlphaWave, and Innoven Capital.
9. In August 2021, OfBusiness secured a massive funding of 1300 CR from Tiger Global, propelling it to unicorn status with a valuation of 10,000 CR, becoming the 18th unicorn of 2021. 🦄
➡️ Today, OfBusiness boasts a revenue of 7,139 CR and a staggering valuation of 40,000 CR.
The story of Ashish Mohapatra reflects a journey of resilience, transforming rejection into a billion-dollar success on the 74th attempt. 💪