Welcome to Money Making Story,

Today, we’re thrilled to share the story of Ashish Mahapatra, who left venture capital to build Off Business, a billion-dollar B2B giant.

• Top Advice

• Understanding the Value Chain in Detail

• Keeping Loan Defaults at Minimal Levels

• Establishing a Strong Market Presence

• Leadership Greenflags

• Scaling Without Traditional Marketing

• Building a Sustainable Business Model

• Future Plans

• Lessons for Aspiring Entrepreneurs

• A Story Worth Reading

Top Advice:

"A deep understanding of supply chains, financial discipline, and strategic expansion can transform a fragmented industry into a structured and sustainable business."

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In 2015, Ashish Mohapatra left his venture capital career at Matrix Partners to establish Off Business. With an academic background from IIT and ISB and experience at McKinsey, he had studied countless businesses. One recurring observation stood out—India’s economy was expanding rapidly, yet the Micro, Small, and Medium Enterprises (MSME) sector remained inefficient, particularly in raw material procurement.

MSMEs contribute nearly 30% of India’s GDP and employ more than a third of its workforce, yet their supply chains are unorganized, with high costs and unreliable procurement processes. Mahapatra identified an opportunity to introduce structure and efficiency into this space and collaborated with four co-founders to transform the sector.

Understanding the Value Chain in Detail

The Importance of Raw Materials

Off Business concentrated on raw material supply, focusing on commodities such as steel, aluminum, chemicals, and textiles. Unlike finished goods, which yield higher profits but are purchased less frequently, raw materials are required consistently, providing stability in cash flow.

In traditional procurement, a small manufacturer needing steel sheets cannot buy directly from large producers like JSW. Instead, they must go through multiple middlemen, each adding a markup. Off Business simplified this process by enabling manufacturers to purchase raw materials more efficiently, reducing costs and delays.

Off Business focused on raw materials, a segment with thinner margins but high transaction frequency. Unlike finished goods, raw materials require continuous replenishment, making them a stable business category.

The supply chain for materials like steel sheets is intricate. Large manufacturers such as JSW produce steel in bulk but do not supply directly to MSMEs. Instead, multiple intermediaries handle distribution, increasing costs for businesses.

By simplifying procurement and offering credit solutions, Off Business improved efficiency and lowered costs for MSMEs.

Keeping Loan Defaults at Minimal Levels

Most transactions in B2B trade operate on credit, which presents a risk of payment defaults. While the industry average for Non-Performing Assets (NPAs) is 4-5%, Off Business has kept its rate below 1%.

This is achieved through:

• Selective Lending: Only companies with revenues above ₹20 crores and strong credit histories qualify for financing.

• Proactive Collections: Payments are actively tracked, ensuring adherence to deadlines.

• Business Dependence: MSMEs rely on Off Business for raw materials, encouraging them to make timely payments.

Establishing a Strong Market Presence

To strengthen its role in the supply chain, Off Business diversified its services beyond material aggregation. Over time, it expanded into:

• Warehousing and logistics support to improve delivery efficiency.

• Financial solutions to assist manufacturers with working capital needs.

• Manufacturing operations through acquisitions in high-demand material categories.

By analyzing trends in material demand, Off Business selectively entered production whenever a shortage was identified. Today, its manufacturing division accounts for nearly 27% of total revenue.

The company’s revenue now stems from four key areas:

1. Distribution and wholesale of raw materials.

2. Support services such as warehousing and logistics.

3. B2B financing solutions.

4. Manufacturing raw materials, which now contribute 27% of revenue.

By integrating multiple aspects of the supply chain, Off Business improved profitability and strengthened its market position.

Leadership Greenflags

Scaling Without Traditional Marketing

Instead of relying on advertising to attract new customers, Off Business developed BidAssist, a tool that helps MSMEs track government tenders. The Indian government issues up to 17,000 tenders daily, and small businesses often struggle to identify relevant opportunities.

BidAssist automates this process, filtering tenders based on user preferences. The tool is available at no cost, encouraging businesses to register. As a result, over 20 lakh MSMEs have joined the platform, many of whom later use Off Business for procurement and financing.

Additionally, suppliers benefiting from Off Business' financial solutions often referred their buyers, leading to continuous network growth.

Building a Sustainable Business Model

In the early stages, Mahapatra and his team dedicated extensive time to establishing Off Business. However, with structured leadership and automation in place, they built an enterprise that operates efficiently without constant hands-on management.

Turning Insights into Business Opportunities

Off Business relies on data analytics to drive decision-making. By monitoring purchasing trends, the company identifies gaps in supply and capitalizes on them through strategic acquisitions.

Prioritizing Financial Stability Over Rapid Expansion

While many startups focus on expanding operations first and addressing profitability later, Off Business took a different approach. From the outset, it maintained a structured financial model, ensuring sustainability as it grew. Today, the company reports:

• ₹41,000 crores in revenue

• ₹400 crores in net profit

Future Plans

Fostering Long-Term Business Relationships

Off Business prioritizes long-term partnerships rather than one-time transactions. It ensures customer retention through:

• Financial services that help businesses maintain liquidity.

• An optimized procurement process that enhances efficiency.

• Expanded manufacturing to provide unique solutions for clients.

By consistently delivering value, Off Business reduces customer churn and strengthens loyalty.

Expanding Market Influence

Off Business aims to scale further while maintaining a sustainable and profitable framework. The company plans to:

• Increase its manufacturing capacity.

• Integrate more technological advancements to enhance procurement and financial solutions.

• Enter additional sectors based on market insights.

Lessons for Aspiring Entrepreneurs

The journey of Off Business provides key lessons for those looking to build sustainable and scalable businesses:

• Understand Your Market Deeply: A strong grasp of industry dynamics helps identify real opportunities.

• Prioritize Financial Discipline: Ensuring profitability from the outset prevents reliance on external funding.

• Leverage Technology for Growth: Digital tools and data analytics can optimize operations and scale customer acquisition.

• Build a Strong Network: Long-term relationships with suppliers, customers, and financial partners are crucial for success.

• Start with Sustainable Business Models: Avoid chasing aggressive growth at the expense of stability and profitability.

• Adapt and Expand Strategically: Enter new business verticals based on data-driven demand analysis rather than speculation.

• Leadership Matters: Delegation and structured management ensure long-term operational efficiency.

More about Asish Mohapatra

From an initial concept to a ₹41,000 crore business, Off Business demonstrates that sector expertise, disciplined financial strategies, and technology-driven solutions can lead to long-term success. Unlike many companies that focus solely on scaling, Off Business has built a business that is both expansive and financially sustainable.

Final Takeaway

Off Business illustrates how a well-managed supply chain, risk-conscious financial planning, and practical problem-solving can transform a traditionally unstructured industry. By addressing inefficiencies in procurement and credit access, Ashish and his team have built a ₹41,000 crore company that continues to grow while maintaining financial strength.

A Story Worth Reading

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