Mumbai-based B2B packaging marketplace Bizongo is raising INR 68.35 Cr from several investors, including Accel India, IDG Ventures and International Finance Corporation. All three are existing investors in Bizongo.
According to the company’s filings with the Ministry of Corporate Affairs, of the total amount to be raised, Bizongo has already received INR 29.44 Cr from two investors, namely Accel India and CDC Group (Commonwealth Development Corporation). The company has raised the amount by allotting Series C2 Compulsorily Convertible Preference Shares at a nominal amount of INR 10 per share and a premium of INR 17,207 per share. Accel has invested INR 7.36 Cr while CDC Group has contributed INR 22.08 Cr.
According to the filings, the company’s shareholders approved the private placement offer of INR 68.35 Cr on December 15, 2020. The company last raised funds in January 2020, for its Series C round worth $30 Mn, led by Switzerland-based hedge fund Schroder Adveq.
Founded in 2015 by IIT graduates Aniket Deb, Sachin Agrawal and Ankit Tomar, Bizongo is a B2B online marketplace offering industry packaging supplies for sectors such as ecommerce, retail, restaurant and hospitality, FMCG, industrial logistics and food and beverage.
Bizongo makes the process of listing of packaging products easier for manufacturers by leveraging an in-house design studio and its proprietary software suite — Design Square, Artwork Flow and Procure Live. The startup also looks after the entire packaging value chain, thereby helping businesses to reduce their packaging procurement cost.
Before the recent capital raise, the five-year-old startup had raised $70 Mn from six funding rounds. It claims to have over 350 clients including leading brands such as Flipkart, Snapdeal, Myntra, Bunge, TataCliq, Firstcry and others. The startup works with over 750 manufacturers who create packaging materials in more than 200 product categories.
According to the Indian Brand Equity Foundation (IBEF), India’s ecommerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration.
The growth in ecommerce presents an opportunity for companies offering packaging supplies such as Bizongo and B2B industrial goods marketplace Moglix.