OfBusiness arm picks JP Morgan to raise $150 million

xyzo Financial Services, the lending arm of B2B e-commerce startup OfBusiness, has appointed JP Morgan to raise up to $150 million in primary capital, two people familiar with the matter said.

- Priyamvada C

The company will use the proceeds for its expansion plans, one of the people cited above said, adding that the deal was launched about three weeks ago. About 20% will be reserved for internal investors, while the remaining will be funded by new investors, said the second person, adding that the talks are in early stages and several large private equity funds have been sounded out.