OfBusiness Expands into Food Ingredients

B2B e-commerce platform OfBusiness has acquired Kerala-based Elixir Extracts Pvt Ltd for approximately $10 million (₹86 crore). This marks OfBusiness's fourth acquisition in four years as it prepares for an upcoming IPO.

About the Acquisition

• Target Company: Elixir Extracts specializes in manufacturing spice oleoresins, essential oils, herbal extracts, and micro-encapsulated powders
• Key Clients: Supplies major FMCG players, including Haldiram's and DS Group

This move helps OfBusiness diversify beyond its core construction materials business. The company gains valuable R&D capabilities and solvent extraction facilities through this acquisition. It positions OfBusiness to compete with established players like Synthite Industries and Plant Lipids in the growing food ingredients market.

OfBusiness operates under OFB Tech Ltd and counts global investors SoftBank and Tiger Global among its backers. The company has been actively expanding through acquisitions, having previously bought Alpine Shoes, Koeleman India, and SMW Ispat in recent years.

The food flavors and fragrances sector in India remains largely unorganized, presenting growth opportunities. Kerala-based companies like ManeKancor and Akay Flavours already command about 30% of the global spice oleoresins market. The sector has seen notable deals recently, including EQT-backed Oterra's acquisition of Akay Group in 2022.

This acquisition aligns with OfBusiness's preparations for its IPO. The company continues to strengthen its portfolio across different B2B verticals. Investment bank Singhi Advisors advised Elixir Extracts on this transaction.