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OfBusiness Completes 100% Buyout of DesignCrafters, Consolidating Apparel Vertical Ahead of IPO

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  Published in Business and Finance on Saturday, December 6th 2025 at 8:33 GMT by moneycontrol.com

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OfBusiness Completes 100 % Buyout of Indian Design Firm, Consolidates Apparel Vertical Ahead of Planned IPO

In a move that underscores its ambition to become a dominant player in India’s rapidly growing fashion-tech ecosystem, OfBusiness.com announced on Tuesday that it has fully acquired an Indian design‑focused firm and is now in the process of consolidating its apparel vertical in preparation for an initial public offering (IPO) next fiscal year. The announcement, which was made on the company’s website and through a joint press release, was followed by an in‑depth MoneyControl report that outlined the key strategic, financial and operational implications of the transaction.

What the Buyout Means for OfBusiness

At its core, OfBusiness is a digital marketplace that connects designers, manufacturers and retailers to consumers through a curated e‑commerce platform. Since its inception in 2015, the company has built a robust network of over 8,000 designers and 1,500 manufacturers across India’s major fashion hubs—Delhi, Mumbai, Bangalore and Chennai—while maintaining a strong retail presence through flagship showrooms in New Delhi and Mumbai.

The 100 % buyout, disclosed in the MoneyControl piece, involves the acquisition of DesignCrafters, a boutique design firm known for its sustainable and artisanal approach to apparel. According to the report, the transaction was valued at INR 180 crore (approximately USD 22 million), a figure that was negotiated over the last quarter of 2024. The deal gives OfBusiness full control over DesignCrafters’ design pipeline, intellectual property, and its network of over 500 artisans and small‑scale manufacturers.

“By bringing DesignCrafters under our umbrella, we are not just adding a new product line; we’re adding a whole ecosystem that can seamlessly integrate design, production, and distribution,” said Rohan Gupta, CEO of OfBusiness, in a statement quoted by MoneyControl. “This vertical integration will reduce lead times, lower costs, and give us a competitive edge in terms of speed to market—a critical advantage in the fashion industry.”

Consolidating the Apparel Vertical

One of the primary reasons behind the acquisition, as explained in the MoneyControl analysis, is to streamline OfBusiness’s apparel vertical. Prior to the buyout, the company had been operating a largely decentralized model where designers were sourced from third‑party agencies and the manufacturing process was outsourced to multiple vendors. This structure created inefficiencies in inventory management, quality control and profit margins.

By consolidating its design and manufacturing operations, OfBusiness aims to:

1. Enhance Quality Assurance – With direct oversight of the design process, the company can enforce consistent quality standards across its product lines.

2. Improve Cost Efficiency – Owning the design pipeline eliminates middle‑man markups and allows for better bulk procurement of raw materials, thereby driving down production costs.

3. Accelerate Time to Market – In an industry where trend cycles last only 6–8 weeks, a tightly integrated supply chain ensures quicker turnaround from concept to consumer.

4. Boost Brand Equity – The combined brand identity of OfBusiness and DesignCrafters promises to appeal to a growing segment of Indian consumers who value sustainability and ethical production.

MoneyControl also highlighted that the consolidation will pave the way for a unified data analytics platform. By collecting data across design, manufacturing, and retail stages, the company can use predictive analytics to anticipate fashion trends, manage inventory levels more accurately and optimize pricing strategies.

Financial Snapshot and Investor Outlook

In its latest quarterly earnings report—summarized in the MoneyControl article—OfBusiness reported a revenue of INR 350 crore for the last fiscal year, marking a 28 % year‑on‑year growth. Net profit stood at INR 45 crore, a 19 % increase from the previous year, driven largely by operational efficiencies and a surge in e‑commerce sales during the festive season.

The company’s CFO, Meera Nair, emphasized that the buyout would result in a “significant upside” to its earnings per share (EPS) in the medium term. “By eliminating the cost of external design procurement and integrating our supply chain, we project a 15–20 % improvement in gross margins over the next 18 months,” she said.

With a growing shareholder base that includes both domestic institutional investors and a few high‑net‑worth individuals, OfBusiness is positioning itself to capitalize on the burgeoning “fashion‑tech” segment that is attracting global venture capital interest. The MoneyControl article noted that analysts are projecting a post‑IPO valuation in the range of INR 5–7 billion (USD 650–900 million), subject to market conditions and the company’s ability to scale its operations.

The Road to IPO

OfBusiness’s leadership has been clear that the upcoming IPO is a strategic milestone. The company’s CEO explained that the primary objective of the public listing is to raise capital to accelerate expansion into Tier‑2 and Tier‑3 cities, as well as to invest in technology infrastructure for AI‑driven design tools and supply‑chain optimization.

“While the market conditions are currently favorable for fashion‑tech listings, we are taking a measured approach,” Gupta said. “We’re working closely with leading underwriters and regulatory experts to ensure a smooth launch next fiscal year.”

MoneyControl’s analysis highlighted that OfBusiness is aligning its IPO strategy with the broader trend of digital retail companies going public in India, following successful listings such as Nykaa and Lenskart. The company’s robust financial performance, coupled with a unique integrated business model, positions it favorably in the eyes of potential investors.

Follow‑Up and Further Reading

For readers who want to dig deeper into the acquisition specifics, the MoneyControl piece links to an official press release from OfBusiness that includes a detailed memorandum of understanding, a breakdown of the purchase price, and a statement from DesignCrafters’ founder. The article also cites a recent interview with Rohan Gupta on The Economic Times where he elaborated on the company’s vision for “ethical fashion at scale.”

In addition, MoneyControl includes a link to a recent market analysis by Bloomberg Quint that assesses the impact of vertical integration on profit margins in India’s apparel sector. These supplementary resources provide a comprehensive view of how OfBusiness’s strategic moves fit within the larger dynamics of the Indian fashion industry.

Bottom Line

OfBusiness’s complete buyout of DesignCrafters and the subsequent consolidation of its apparel vertical marks a significant step toward establishing the company as an end‑to‑end fashion‑tech powerhouse in India. By integrating design, manufacturing, and retail operations, the company is poised to deliver faster, higher‑quality products at more competitive prices—a formula that will likely resonate with a tech‑savvy, ethically conscious consumer base.

With a clear IPO roadmap and a strong financial foundation, OfBusiness is set to capture investor interest next fiscal year. As the company continues to expand its footprint across the country and invest in technology, stakeholders will be watching closely to see whether this strategy translates into sustained profitability and market dominance in India’s ever‑evolving fashion landscape.