Bizongo scales to $150-Mn in annualised revenue; nears profitability
New Delhi : Tech-enabled B2B e-commerce platform for customized goods, Bizongo is set to turn profitable as it achieves $150 million in annualized revenue. The company’s topline grew by 5X as compared to its pre-pandemic levels. Bizongo aims to clock $500 million annualized revenue by FY22-23.
The remarkable growth comes on the back of Bizongo offering its proprietary platform for replenishing and supplying more than 10 million Personal Protective Equipment (PPE) for healthcare workers and launching a new vertical in textiles and apparel, which contributes 40 per cent to the overall business. The packaging business noted a 240 per cent growth with increased demand from healthcare, consumer staples, and discretionary industries.
The Series C company is also expanding into pharma and healthcare verticals and has started servicing international customers and markets. This growth trajectory strengthens the company’s vision of becoming a global B2B e-commerce leader in the customized goods segment.
The overall market size of domestic customized goods, ranging from packaging, textiles, apparel, specialty chemicals, and other contract manufactured products, is estimated to be $500-billion, with more than 10% margin potential for digital aggregators. Currently, the space is fragmented and unorganized, with challenges arising from higher Total Cost of Ownership (TCO), manual processes, offline catalog and artwork management, ad-hoc vendor engagement, inaccurate purchase planning, high inventory, loss of sales, and delayed payments to vendor partners.
Bizongo brings a tech-first strategy against a trade-first [1]approach through digital vendor management, supply chain automation, and supply chain financing. The company digitally transforms the vendor ecosystem and integrates it with customer’s end-to-end supply chain processes to deliver agility and transparency across the entire value chain. This significantly improves the go-to-market speed, top line, bottom line, and operational efficiency of the enterprises.
Sachin Agrawal, Co-founder, Bizongo said, “From early on in our journey, positive unit economics has been a testimony of the successful business model that we have created. Over the last couple of years, Bizongo has made its operating model inventory-free as it further strengthens the capital efficiency of the business. As a co-founder, I am extremely proud that the team has demonstrated tremendous grit and resilience through the past year and is now inches away from EBITDA profitability.”
Bizongo plans to hire an additional workforce of 50-60 people in the next few months across tech, sales, finance, and customer success. The technology company has partnered with more than 15 leading banks and financial institutions to facilitate early payment to its customer’s vendors. Bizongo has launched a state-of-the-art live price discovery and bidding platform to provide unparalleled access to both customers and vendors in the ecosystem.
Ranjith Menon, Partner and Executive Director at Chiratae Ventures said, “The full-stack approach with an asset-light operating model is what makes it truly scalable for Bizongo. In addition, the company has generated positive cash flow from operations for the past three-quarters, a feat rarely achieved in the B2B e-commerce space. With all this, Bizongo has created a solid foundation to accelerate growth further and consolidate its market leadership in such a large and untapped market.”
Bizongo recently closed its Series C funding of $51 million and appointed Manish Choksi, Vice Chairman, Asian Paints, as a Board Advisor to build digitally integrated global supply chains and drive market expansion.
The company is backed by Schroder Adveq, CDC Investment, AddVentures, Chiratae Ventures, B Capital Group, IFC, and Accel.