Bizongo Secures $50 Million in Series-E Funding from Existing Investors
- ByStartupStory | October 4, 2023
Bizongo, a leading B2B vendor-digitization platform, has successfully raised approximately $50 million in a Series-E funding round, primarily backed by its existing investors. The funding was spearheaded by Schroder Adveq, a prominent private equity firm based in Zurich. This latest infusion of capital has propelled Bizongo’s valuation to an impressive $980 million, reflecting a remarkable 63% increase compared to the previous funding round in August 2022.
Noteworthy participants in this funding round include International Finance Corp, Chiratae Ventures, B Capital, and British International Investment. Bizongo’s co-founder and CEO, Sachin Agrawal, expressed the company’s ambitious goal of achieving profitability before tax for the fiscal year ending in March 2024.
Furthermore, Bizongo has disclosed its ongoing discussions regarding a potential acquisition, although specific details have not been divulged. In 2022, the company made strategic acquisitions of Hexa and Clean Slate Technologies, underscoring its commitment to growth and expansion.
Founded in 2015 by IIT graduates Sachin Agrawal, Aniket Deb, and Ankit Tomar, Bizongo has emerged as a trailblazing platform that offers software-based solutions for vendor management, supply chain automation, and financing. Over the years, the company has diversified its focus across various segments of vendor digitization, encompassing industries such as packaging, textiles, apparel, and contract manufacturing.
Presently, Bizongo derives 50% of its revenue by streamlining raw material procurement and purchasing workflows for small and medium-sized vendors. The remaining 50% is generated by extending unsecured financing to these vendors. The company has established partnerships with over 40 banks and non-bank financial institutions to facilitate loans for its vendors.
Bizongo’s strategic shift over the last two and a half years has seen a transition from apparel and packaging to core industries like metal. Steel and aluminum currently constitute more than 50% of the raw materials procured by SME vendors on its platform. Paper and polymer each account for approximately 15% of the volume, with the remainder sourced from yarn and other raw materials.
The company’s customer base has also witnessed substantial growth, with close to 99% of the customers acquired in the last two years belonging to traditional industries. Currently, Bizongo serves approximately 450-500 enterprise customers and has onboarded 7,000-8,000 SME vendors on its platform, marking significant growth compared to 175 customers and 2,500-3,000 vendors just two years ago.
In FY23, Bizongo reported a gross merchandise value (GMV) of $800 million and generated positive cash flow of about $7-8 million. While the company has maintained a consistent loss of approximately Rs 100 crore in FY21, FY22, and FY23, it is now strategically focusing on profitability. For FY24, Bizongo anticipates moderate growth of 25-30% in net revenue as it continues to pursue its path to profitability.
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