Bizongo, a B2B e-commerce and supply chain enablement startup for enterprises, has announced a $110 million Series D funding round led by American investment firm Tiger Global Management. The round also featured participation from investors such as BCap, Chiratae Ventures, CDC Group, Schroder Adveq, International Finance Corporation (IFC), IFC Emerging Asia Fund (EAF), and Add Ventures by SCG.
The company’s valuation has risen to $600 million as a result of the fresh funding. Bizongo plans to use the fresh capital to expand its business and attract new talents for its technology teams in order to develop a suite of digital solutions for both sides of the marketplace. It will also invest in upgrading more than 100 factories into true “cloud factories” using its proprietary technology.
The SaaS-based IoT-powered ‘cloud factory’ for made-to-order goods will facilitate manufacturers to offer real-time control, visibility, and intelligence spanning the whole supply chain to their consumers. This cloud factory technology is being tested with pharmaceutical packaging manufacturer Ansapack.
Bizongo recently introduced a real-time seller and price discovery online bidding platform. It is also strengthening its digital supply chain financing (SCF) platform in collaboration with banks and non-bank financial companies (NBFCs). The company claims that its SCF platform has already facilitated more than 1,000 SMEs and MSMEs to collect early payments totaling over Rs 1,000 crore.
The B2B tech firm’s top line increased eightfold from pre-pandemic levels, reaching $250 million in November of this year. The company’s expansion is also driven by strong unit economics and positive cash flow since it is now earnings before interest, taxes, depreciation, and amortization (EBITDA) profitable. Bizongo has minimized inventory from its operating model, increasing the company’s capital efficiency.
Commenting on the fundraise Sachin Agrawal, Co-founder at Bizongo, said, “There is a lot of untapped potential in the way Indian businesses can leverage technology to grow and thrive. We are now fully geared to sustainably grow the business by at least 300 percent year-on-year (YoY) from here on.”
John Curtius, Partner at Tiger Global Management, said, “The market for customized goods is the fastest-growing segment in B2B e-commerce. At a size of $500 billion, this market is vast yet highly fragmented and unorganized. We found Bizongo very unique in the way they have been building a transaction-led platform with a tech-first vs a trade-first mindset. The full-stack approach with an asset-light operating model makes Bizongo stand out as a market leader in this segment.”
SmartPaddle Technology Pvt. Ltd owned Bizongo was founded in 2015 by three IIT grads Aniket Deb, Ankit Tomar, and Sachin Agrawal. The startup is a B2B online marketplace that provides industry packaging supplies for sectors that include e-commerce, FMCG, industrial logistics, retail, restaurant & hospitality, and food & beverage.
Bizongo manufactures carry bags, cartons, containers, cans, material handling equipment, protective packaging, pouches & tubes, non-paper-based packaging, shippers, paper goods, bulk packaging, among other packaging supplies. According to its website, the company has partnered with well-known brands such as Walmart-owned Flipkart, logistics startup Ecom Express, Tata Cliq, Firstcry, and Licious, among many others.