As it accelerates the shift to a manufacturing-driven model, IPO-bound OfBusiness is in advanced talks to acquire a stake in Indian Designs Exports Pvt. Ltd., a Bengaluru-based apparel and home furnishings manufacturer and exporter with clients like Zara, H&M, and IKEA, according to a report from Moneycontrol. This is the fifth deal of its kind in four years.
According to people familiar with the situation, the purchase, which is still in the works, is anticipated to bolster OfBusiness’ position in the apparel manufacturing industry in advance of its anticipated US $ 1 billion initial public offering. According to sources, it might involve a financial component and share swap.
OfBusiness did not disclose the specifics of the agreement with Indian Designs Exports, despite confirming its involvement in the clothing manufacturing sector.
By purchasing brands and manufacturers to create private labels and integrated supply chains, the Gurugram-based B2B raw material fulfilment platform OfBusiness has been expanding beyond its initial commodity aggregation business, which is vulnerable to fierce competition from both organised and unorganised players. OfBusiness was founded in 2015.
With 12 production facilities in Bangladesh and India, Indian Designs Exports (IDEPL), which has been in business for three decades, employs more than 15,000 people to produce home textiles and casual garments. A March 2025 CARE Ratings note states that the company’s revenue in FY ’24 was Rs. 1,246 crore (US $ 144 million), with an EBITDA margin of 9.85 per cent.
With a clientele mostly from the European and American markets, including H&M, Zara, IKEA, Old Navy, Target, Aritzia, American Eagle, Asos, and Primark, and more than 25 foreign purchasers across all categories, exports accounted for 94 per cent of its topline.
IDEPL reported standalone revenue of Rs. 738 crore (US $ 85.82 million) for the first nine months of FY ’25, with an active order book of Rs. 253 crore (US $ 29.42 million) as of February 2025. Recurring orders and renegotiated terms with key clients like IKEA let it sustain EBITDA margins over 6 per cent in spite of cost constraints like increased air freight.
About 10 per cent of OfBusiness’s total revenue currently comes from the garment industry; this percentage is probably going to increase with the most recent investment. Through its aggregator approach, it already serves both domestic and international companies, such as Zara, Abercrombie & Fitch, Doen, Michael Kors, Uniqlo, Adidas, and Skechers, according to its website.
