Tiger Global-Backed Packaging Startup Bizongo Secures $25 Mn To Offer Supply Chain And Credit Solutions To Businesses

B2B packaging startup Bizongo has secured $25 Mn from Liquidity Group’s fund— Mars Growth Capital.

Bizongo will use the capital to expand its footprint in Southeast Asia and grow its customer base for supply chain business.

“The funding will allow for 100% availability of packaging material and no-stock-outs at very low inventory level, as well as help Bizongo’s clients to reduce their made-to-order product line procurement cost,” said Yaron Primovich, managing director at Mars Growth Capital and the Global CRO of Liquidity Group.

Founded in 2015 by IIT graduates–Aniket Deb, Sachin Agrawal and Ankit Tomar, Bizongo is a tech-enabled B2B platform that offers packaging solutions across diverse sectors including consumer durables, fashion and lifestyle, textiles, consumer discretionary, pharmaceuticals, home and personal care.

Besides, Bizongo also offers supply chain automation and financing, and digital vendor management services via its proprietary digital platforms–Procure Live, Partner Hub, and Artwork Flow.

“Bizongo has powered Indian manufacturers to automate their supply chain, access working capital and increase their clientele. We want to bring similar benefits to manufacturers across SE Asia and help them scale. The credit line from Mars Growth Capital will fuel our expansion into more sectors,” Agrawal said.

Bizongo’s product offerings include carry bags, material handling equipment, protective packaging, pouches and tubes, packaging, containers, cans, shippers, paper products, bulk packaging and cartons. 

In March, Bizongo acquired IoT startup Clean Slate for an undisclosed amount. Prior to that, it bought back $3.7 Mn worth ESOPs in February this year.

In 2021, Bizongo secured $110 Mn in a Series D funding round at a post-money valuation of $600 Mn. The round was led by Tiger Global. 

The startup claims to boast 1,500 manufacturers across India and holds a monthly capacity of 2 Mn tonnes. It further asserts to have over 120 clients and delivered more than 860 Mn units to date. Its clientele includes Flipkart, Tata Cliq, Firstcry, Ecom Express and Licious, among others. 

In the financial year 2021, Bizongo reported earrings from operations at INR 318 Cr and consolidated losses stood at INR 86 Cr, according to Tofler.

In the packaging segment, it competes with the likes of Vistaprints and Bambrew while in the vendor management, it faces competition from Sirion Labs, Zoho, and Freshworks.

According to a report, India’s packaging industry, which was pegged at $50.5 Bn in 2019, is likely to become a $204.81 Bn market by 2025, growing at a CAGR of 26.7% during 2020-2025.