Oxyzo – Growth Backed by Strong Fundamentals

 

Introduction
In the competitive landscape of non-banking financial companies (NBFCs), few players manage to scale quickly while maintaining strong fundamentals. Oxyzo Financial Services Limited (OFSL), founded in 2016, has achieved this balance with remarkable efficiency. From its beginnings as a purchase finance specialist, Oxyzo has evolved into a diversified SME lender with one of the strongest risk and governance frameworks in the industry.

Business Growth and Reach
Oxyzo started with a niche focus—helping SMEs finance raw material purchases. This product addressed a critical working capital need for manufacturers and traders. Over the years, it broadened its portfolio to include secured and unsecured long-term loans, giving SMEs more flexibility to invest in machinery, capacity expansion, and new business opportunities.

The company operates through a hub-and-spoke model, which ensures both reach and cost efficiency. With a presence across more than 70 industrial clusters in 20+ states, Oxyzo has built a diversified book that mitigates geographic and sectoral risks.

Leadership and Execution
Oxyzo’s growth trajectory is closely linked to its leadership team. CEO Ruchi Kalra brings extensive consulting experience in financial services, having worked on major transformation projects with banks and NBFCs. At Oxyzo, she focuses on financial discipline, compliance, and strategy execution. Director Vasant Sridhar, with his Six Sigma background and process excellence expertise, leads Southern operations and drives customer acquisition in SME clusters. Together, they ensure that the company remains both agile and robust.

Financial Performance – FY25
The company’s financial performance underscores its disciplined growth:

• AUM: ₹8,341.72 crore

• Revenue: ₹1,129.18 crore

• PAT: ₹328.57 crore

• PAT Margin: 29.10%

• Net Worth: ₹2,923.22 crore

• ROE: 11.92%

• NNPA: 0.43%

• CRAR: 33.50%

The ability to maintain sub-1% NNPA while delivering double-digit ROE reflects a balance of risk control and profitability rarely seen in mid-sized NBFCs.

Institutional Confidence
Oxyzo’s credibility is reflected in the institutions that back it. Banks like SBI, Canara Bank, and IDBI provide lending lines, while equity partners such as Matrix Partners, Norwest Venture Partners, and Alpha Wave Ventures offer long-term growth capital. This mix of debt and equity support has allowed Oxyzo to scale without compromising stability.

Bond Investment Opportunity
Oxyzo’s senior secured corporate bond, rated ICRA A+, is an attractive option for investors. With a YTM of 10.00% and a 19-month tenure, it offers short-duration stability with above-market returns. The minimum investment of ₹90,464 makes it accessible to high-net-worth individuals and institutional investors alike.

Outlook and Takeaways
India’s SME credit gap is massive, and NBFCs like Oxyzo are essential in bridging it. With its diversified loan book, low NPAs, and strong capital adequacy, Oxyzo is well-positioned to capture future opportunities. For investors, this translates into both safety and consistent returns.

Conclusion
Oxyzo exemplifies growth anchored in fundamentals. By focusing on SMEs, strengthening governance, and maintaining excellent financial health, it has carved out a distinct niche. For investors, Oxyzo’s bonds provide a secure, high-yield alternative that combines credit quality with short-term flexibility.