OfBusiness Invests $2.5 Mn In Construction Management Startup Tracecost To Drive Digital Adoption

Building material-focused B2B ecommerce platform OfBusiness has reportedly made a strategic investment of $2.5 Mn in construction management startup Tracecost. 

The contours of the deal were not immediately clear.

OfBusiness was quoted as saying by Entrackr that the move would drive digital adoption in construction-focused companies across India, North America and the Middle East.

OfBusiness, founded in 2016 by Bhuvan Gupta, Vasant Sridhar, Ruchi Kalra, Nitin Jain, and Asish Mohapatra, facilitates raw material procurement and credit for small and medium-scale enterprises (SMEs) in the manufacturing and infrastructure sectors. 

Tracecost was founded in 2018 by Madhvi Walia, Prabh Paul and Sunny Vohra. The startup offers real-time construction management software to manage resources and finances of construction projects. 

Gurugram-based OfBusiness had last raised $325 Mn in a Series G round led by Alpha Wave Ventures II, Tiger Global Management and Softbank Vision Fund 2 at a valuation of nearly $5 Bn. 

More recently in March, the company’s financial arm Oxyzo became the 98th unicorn of the country after raising $200 Mn in a funding round from Alpha Wave, Tiger Global, Norwest Venture Partners, Matrix Partners and Creation Investments.

Oxyzo serves more than 2,500 SMEs across India, disbursing loans worth INR 4,000 Cr annually. The startup reportedly has more than 5,000 clients and 2,000 suppliers on its B2B platform. 

Sridhar recently told Inc42 that OfBusiness’ various businesses had grown 3X over the last year.

OfBusiness’ procurement platform competes with the likes of Infra.Market in the highly-competitive space. 

As per a report by Research and Markets, the global B2B ecommerce market size is expected to reach $20.9 Tn by 2027, growing at a CAGR of 17.5% during 2020 -2027. The Asia Pacific region held the largest revenue share of above 65% in 2019 in terms of B2B ecommerce, which is expected to expand at a CAGR of 18% till 2027. 

Last week, Aditya Birla Group-owned Grasim Industries also announced its foray into the building material-focused B2B ecommerce space.

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