B2B Packaging Startup Bizongo’s FY22 Loss Widens 17% To INR 100 Cr, Revenue Jumps 441%

Mumbai-based B2B packaging startup Bizongo reported a 17% increase in its net loss to INR 100.3 Cr in the financial year 2021-22 (FY22) from INR 86 Cr in the prior fiscal year on the back of a sharp rise in the company’s expenditure towards purchases of stock-in-trade.

Bizongo’s loss grew despite a five-fold rise in its operating revenue to INR 1,711.1 Cr in FY22 from INR 315.2 Cr in FY21. 

As a packaging solutions provider to sectors including fashion and lifestyle, textiles, consumer staples, consumer discretionary, and pharmaceuticals, Bizongo earns a majority of its revenue from its product sale.

In the reported period, the startup earned INR 1,705.7 Cr from the sale of products, which grew almost 5.5X year-on-year (YoY).

Meanwhile, Bizongo’s revenue share from the sale of services stood at INR 5.2 Cr in FY22 as against INR 1.8 Cr in the prior fiscal year.

While Bizongo’s product offerings include material handling equipment, protective packaging, carry bags, pouches and tubes for various industries, the startup also offers supply chain automation and financing, and digital vendor management services through its proprietary digital platforms — Partner Hub, Procure Live, and Artwork Flow.

The startup earned a total revenue of INR 1,719.2 Cr in FY22, up 441% from INR 317.6 Cr in FY21.

As per its website, Bizongo’s 120+ customer base includes Apollo Pharmacy, PharmEasy, D’Decor, Wonderchef, and Zoff. The Tiger Global-backed startup claims to have partnered with 1,500 manufacturers nationwide and delivered over 860 Mn units so far.

The growth in business resulted in its expenses growing almost at the same pace as revenue during the year. Bizongo spent a total of INR 1,819.6 Cr in FY22, up 4.5X from INR 403.6 Cr in the prior fiscal year.

Purchases of stock-in-trade accounted for the biggest chunk of total expenditure. Bizongo spent a total of INR 1,635.5 Cr in FY22 towards the purchase of finished goods for resale purposes, up 5.2X from INR 314.8 Cr in FY21.

It is pertinent to note that the startup spent over 95% of its total income towards the purchase of stock-in-trade.

Besides, the expenditure towards employee benefits rose 1.1X YoY to INR 61.5 Cr in FY22. While Bizongo spent INR 50 Cr towards salaries and wages, its expenditure towards ESOPs stood at INR 9 Cr in the period.

The company’s business expansion and subsequent team growth have been in line with its announcement during its $110 Mn Series D funding round in December 2021. During the fundraising, which was led by Tiger Global at a valuation of $600 Mn, Bizongo said it would ramp up its business and tech teams.

Bizongo’s finance cost also saw a 4.8X YoY jump to INR 40.9 Cr in FY22.

The startup’s other expenses, which included rent, legal professional charges, and provision for bad doubtful debts created, rose 1.9X to INR 67.9 Cr in the year from INR 35.7 Cr in FY21. However, Bizongo managed to decrease its cost of transportation to INR 10.4 Cr in FY22 from INR 13.7 Cr in the previous year.

Founded in 2015 by IIT graduates Aniket Deb, Sachin Agrawal, and Ankit Tomar, Bizongo announced the acquisition of IoT startup Clean Slate for an undisclosed amount in March last year. 

Post that, it secured another funding of $25 Mn in August 2022 from Liquidity Group’s fund Mars Growth Capital.

Bizongo, backed by the likes of Add Ventures, B Capital Group, Chiratae Ventures, Accel, and Castle Investment, has been planning to further expand its footprint in Southeast Asia and grow the customer base for its supply chain business. 

The global packaging and protective packaging market is expected to reach a size of $1.5 Tn by 2031, clocking a CAGR of 4.3% between 2022 and 2031, as per a report.