Oxyzo Launches Oxyzo Credit Fund I, Securing Investment From Tourism Finance Corporation of India

Why It Matters

The fund diversifies Oxyzo’s revenue beyond traditional NBFC lending, positioning it to capture growing demand for structured credit in India’s SME sector. Its ESG focus and sizable AUM target signal a strategic shift toward sustainable, large‑scale asset management.

Key Takeaways

• Oxyzo launches first credit fund, OCF‑I
• Fund targets secured credit for mid‑size, investment‑grade firms
• TFCI commits up to 5% of fund’s corpus
• Goal: Rs 3,000 crore AUM in 4‑5 years
• ESG‑compliant companies prioritized in investment strategy

Pulse Analysis

Oxyzo’s entry into fund management marks a pivotal evolution for the technology‑driven NBFC, which has traditionally focused on SME lending. By establishing Oxyzo Investment Manager Private Limited and rolling out OCF‑I, the firm leverages its data‑rich underwriting platform to originate secured credit assets at scale. This diversification aligns with broader trends in India’s financial services sector, where non‑bank lenders are expanding into structured credit to mitigate concentration risk and tap into higher‑margin opportunities.

OCF‑I, registered as a Category II Alternative Investment Fund with SEBI, will allocate capital to mid‑sized, investment‑grade companies seeking growth financing. The fund’s first close already includes high‑net‑worth individuals, family offices, and institutional investors, while the Tourism Finance Corporation of India’s commitment of up to 5% of the corpus adds a sovereign‑backed endorsement. Oxyzo’s roadmap targets Rs 3,000 crore in assets under management within the next four to five years, with a clear emphasis on ESG‑compliant borrowers, reflecting rising investor demand for sustainable credit exposure.

The launch has broader implications for the Indian credit market. As SMEs continue to outpace traditional bank lending, alternative credit providers like Oxyzo are poised to fill the financing gap, potentially reshaping capital flows toward high‑growth sectors. Coupled with Oxyzo’s recent unicorn status and its parent OfBusiness’s planned $1 billion IPO, the fund underscores a strategic push to become a leading player in both lending and asset management. Competitors will likely accelerate similar fund‑based initiatives, intensifying competition but also expanding the overall depth of India’s alternative investment ecosystem.

Deal Summary

Oxyzo has launched its first credit fund, Oxyzo Credit Fund I (OCF‑I), under its new subsidiary Oxyzo Investment Manager Private Limited. The fund completed its first close, with Tourism Finance Corporation of India committing up to 5% of the corpus alongside high‑net‑worth individuals, family offices and institutional investors. OCF‑I will provide secured credit to mid‑sized, investment‑grade companies and aims to grow assets to around Rs 3,000 crore.