Oxyzo Financial Services has achieved a major milestone in its corporate development by officially joining the fund management industry. The already established unicorn in the Indian financial technology market, the company has introduced its first performing credit fund, called Oxyzo Credit Fund I (OCF-I). It is a strategic shift of the technology-driven NBFC, out of the historic lending business and into the advanced world of alternative investment platforms.

In enabling this growth, the company has incorporated a special purpose subsidiary, namely, Oxyzo Investment Manager Private Limited. This new business is intended to handle and expand credit-oriented investment products, which will enable the organization to use its profound knowledge on the small and medium enterprise (SME) segment and to serve a wider range of advanced investors.

Primary objective and fund strategy

The entrance into fund management was a well-thought-out move, which started in the middle of last year. Oxyzo Investment Manager began its official operation in July 2025, soon after it filed its first fund. Regulatory route of the new subsidiary was solidified in November of last year when it was given the approvals to run the fund.

The Oxyzo Credit Fund I has its main aim of offering secured credit to investment-grade companies of medium size. These companies are normally seeking growth capital to expand their businesses, and the Oxyzo fund is well placed to address this particular need. The company emphasizes on the secured investments to provide a balanced risk-return profile that would be attractive to its target investor audience, which consists of high-net-worth individuals, family offices, and other institutional investors.

The Oxyzo Credit Fund I is in the form of a Category II Alternative Investment Fund (AIF), completely registered with the Securities and Exchange Board of India (SEBI). Such regulatory classification enables the fund to venture into various types of investment involving debt, but at the same time maintain high levels of transparency and institutional control. The company has already established the first close of the fund, showing that the market has a strong appetite at the beginning.

One of the high-profile recommendations of the strategy of the fund was given by the Tourism Finance Corporation of India (TFCI) who officially sanctioned a contribution of up to 5% of the entire amount of OCF-I. In this partnership, there is emphasis on the institutional interest in the credit assessment skills of Oxyzo and its capabilities to detect high-potential companies requiring structured financing.

Financial performance and long-term growth targets

The launch of the credit fund is when the financial growth of Oxyzo Financial Services is strong. Oxyzo showed operating revenue of ₹1,207 crore in the current financial year 25, which is significantly higher than the ₹903 crore of the last fiscal year. This increase was also accompanied by the growth of net profit after tax, which increased to ₹340 crore in FY25 as compared to ₹291 crore in FY24. 

Having a total income of ₹1,211 crore and total assets worth ₹9,236 crore, the company has developed a sound balance sheet that will give it the required stability to explore fund management. Its unicorn-level, which it earned following a massive $200 million Series A investment round, headed by Alpha Wave and Tiger Global, solidifies its role as a leader in the tech-enabled financing sector.

In addition to the mere financial payoffs, Oxyzo is inculcating the current environmental sustainability principles into its investment philosophy. The company has already indicated that Oxyzo Credit Fund I will focus on investing in the firms that are in compliance with Environmental, Social, and Governance (ESG) standards. This emphasis is an indication of an expanding trend in the international and local investment environment where the capital is being channeled more towards those businesses that are exhibiting responsible operation.

The fund management unit has high goals within the next six months. Oxyzo Investment Manager intends to expand its total assets under management to about ₹3,000 crore in the coming four to five years. This expansion will probably be realized by an array of diversified strategies that will suit various sectors of the credit market based on the background left by the first credit fund.

Conclusion

The launch of the Oxyzo Credit Fund I and the creation of Oxyzo Investment Manager Private Limited are new frontier to the company. This diversification of fund management not only helps the company to generate new sources of revenue but is also a source of much-needed growth capital for mid-sized Indian companies. Powerful financial performance, a well-defined regulatory framework, and dedication to ESG-compliant investing make the company a fairly potent force in the AIF market.

Since the parent company, ofBusiness, is also in the process of its own much-anticipated initial public offering of its own $1 billion, investors will keenly monitor the success of the new fund management venture of Oxyzo. This action shows that Oxyzo is able to develop into a multi-faceted financial institution able to cater to the needs of both institutional and individual investors with large amounts of capital.