B2B marketplace OfBusiness has entered into the food processing sector with an agreement to buy 100% stake in Koeleman India, a subsidiary of Netherlands-based Koeleman Foods International.

The deal is valued at around $10 Mn, ET reported.

The Bengaluru-based Koeleman India has a food processing unit in Narsapura, Karnataka. The company processes fruits and vegetables such as gherkins, olives, baby corn, among others. It also supplies these products to major food corporations in the United States, Europe, and Australia.

With this acquisition, OfBusiness will gain access to the food processing facility, as well as Koeleman India’s export markets.

“The Indian food processing industry is witnessing many transactions in the branded and private label space, and this transaction signifies the growing appetite among large groups in expanding their presence in this high-growth segment,” Sreeraj Krishnamoorthy, vice president of Singhi Advisors, said.

Global Investment Bank Limited advised the Koeleman Group on the deal.

Founded in 2016 by Asish Mohapatra, Ruchi Kalra, Vasant Sridhar, Bhuvan Gupta and Nitin Jain, OfBusiness buys raw materials, with a special focus on agriculture and building materials, for SMEs across India. It is backed by SoftBank, Tiger Global, Norwest, Zodius, and Matrix Partners.

OfBusiness also provides cash-flow based financing to the SMEs through its financial arm Oxyzo, which became a unicorn in March last year.

OfBusiness reported a 3.6X year-on-year (YoY) rise in its net profit to INR 201.11 Cr in FY22. Its revenue from operations rose over four-fold to INR 7,139 Cr in the fiscal year ended March 2022.

OfBusiness recently launched its mobile app to onboard small, medium and micro enterprises (SMEs), traders, farmers and distributors. The app provides information about prices of raw materials, news related to industry to help in reducing the current opacity in the market, OfBusiness cofounder Nitin Jain told Inc42 in an earlier interview.