The company will deploy the fresh funds in ramping up its business and tech teams to develop a suite of digital services for both sides of the marketplace.
Bizongo announced its latest fundraise of $110 million in Series D round led by New York-based Tiger Global Management. The B2B ecommerce and supply chain enablement platform, also launched India’s first IoT powered ‘cloud factory’ for made-to-order goods. This SaaS based solution will enable manufacturers to provide their customers with real-time visibility, control, and intelligence across the entire supply chain. The latest tech innovation has been successfully piloted with leading pharmaceutical packaging manufacturer, Ansapack.
Founded by three IIT graduates Aniket Deb, Ankit Tomar and Sachin Agrawal, Bizongo is digitizing the massively fragmented B2B segment of made-to-order goods. With the latest round, Bizongo’s valuation has soared to $600 million, making it the market leader in the segment.
The B2B tech company recorded an 8X growth in its top line from its pre-pandemic scale clocking an ARR of $250mn in November this year. The growth is also associated with a strong unit economics and positive cash flow as the company is now EBITDA profitable. Bizongo has made its operating model inventory-free, further strengthening the capital efficiency of the business.
Sachin Agrawal, Co-founder at Bizongo said, “There is a lot of untapped potential in the way Indian businesses can leverage technology to grow and thrive. Bizongo offers solutions across digital vendor management, supply chain automation and supply chain financing to its enterprise customers. It enables them to digitize their entire vendor ecosystem and build integrated and connected supply chain processes. We are very proud of the grit and resilience the team has demonstrated over the past few years. We are now fully geared to sustainably grow the business by at least 300 percent year-on-year from here on.”
The company will deploy the fresh funds in ramping up its business and tech teams to develop a suite of digital services for both sides of the marketplace. It will also invest in nurturing its vendor partnerships and transform over 100 factories into true cloud factories through its proprietary solutions. The tech company has recently launched an online bidding platform for real-time seller and price discovery – a global first in the customised goods categories like packaging, textiles and apparels amongst others. It is also expanding its digital supply chain financing (SCF) platform in partnership with top banks and NBFCs. The SCF platform has already enabled early payments worth over Rs.1000 Cr to more than 1000 SMEs and MSMEs.
John Curtius, Partner at Tiger Global said “The market for customized goods is the fastest-growing segment in B2B e-commerce. At a size of $500bn, this market is vast yet highly fragmented and unorganized. We found Bizongo very unique in the way they have been building a transaction-led platform with a tech-first vs a trade-first mindset. The full-stack approach with an asset-light operating model makes Bizongo stand out as a market leader in this segment.”
Founding General Partner at B Capital, Kabir Narang said, “We are excited to double down on our investment in Bizongo. It’s great to see the progress of the company since our initial investment a few years back. Bizongo is now a leading tech-enabled online platform that serves as a digital aggregator between a fragmented SME manufacturing base and its customers across e-commerce, FMCG and Healthcare. We are very excited to be part of this journey.”
The series D round had new investments coming from CDC and IFC EAF and saw participation from existing investors BCap, Chiratae Ventures, Schroder Adveq, IFC and Add Ventures by SCG. Manish Choksi, a member of Bizongo’s Advisory Board and the Vice Chairman at Asian Paints, also invested in his personal capacity in the round.
Source: Business World