Vendor Digitisation Startup Bizongo Inches Closer To Unicorn Valuation, Raises $50 Mn Funding

B2B vendor management startup Bizongo raised nearly $50 Mn (INR 416.1 Cr) in a Series E funding round led by Zurich-based private equity firm Schroder Adveq. In addition, International Finance Corp, Chiratae Ventures, B Capital, and British International Investment also participated in the funding round.

Bizongo reached a valuation of $980 Mn with this funding round, marking a 63% increase compared to the previous round in August 2022, cofounder and CEO Sachin Agrawal told ET.

He also claimed that the startup is on track to achieve profit before tax by the end of the fiscal year in March 2024.

Founded in 2015 by IIT graduates – Aniket Deb, Sachin Agrawal and Ankit Tomar, Bizongo is a tech-enabled B2B platform that offers software-based vendor management, supply-chain automation and financing solutions. Earlier, the startup focussed on offering packaging solutions across diverse sectors including consumer durables, fashion and lifestyle, textiles, consumer discretionary, pharmaceuticals, home and personal care.

Currently, it serves 450-500 enterprise customers and has over 7,000-8,000 SMEs onboarded on its platform.

In August 2022, the startup secured $25 Mn from Liquidity Group’s fund — Mars Growth Capital. Before that, in December 2021, the startup had raised $110 Mn in its Series D round led by Tiger Global at a $600 Mn valuation.

Bizongo Aims Profitability

Bizongo generates half of its revenue by streamlining raw materials and purchasing processes for small and medium-sized vendors. The other half of its revenue comes from offering unsecured financing solutions to these vendors. Bizongo has partnered with over 40 banks and non-bank financial institutions to facilitate this financing.

Over the past two and a half years, Bizongo has shifted its focus to the raw material sector. While initially concentrating on apparel and packaging, the startup has transitioned to a stronger emphasis on metal.

Currently, more than half (50%) of the raw materials purchased by SME vendors through its platform consist of steel and aluminium. Paper and polymer account for approximately 15% each in terms of volume share, with the remainder coming from yarn and various other raw materials.

Mumbai-based Bizongo reported a 17% increase in its net loss to $12 Mn (INR 100.3 Cr) in the financial year 2021-22 (FY22). The startup earned a total revenue of $206.5 Mn (INR 1,719.2 Cr) during the financial year.