Bizongo, a B2B marketplace and supply chain enablement platform for customized goods, announced that the company has turned profitable while reporting positive EBITDA numbers in September 2021. The Series C technology platform has grown four times since the start of the year, and already surpassed $200 million in annualized revenue.
Bizongo’s business model is rooted in maintaining positive unit economics and generating free cash flow, which has spiraled the technology firm to achieve profitability and become a market leader in the customized goods categories such as packaging, textiles, apparels and other contract manufactured goods.
Ankit Tomar, o-Founder and CTO, Bizongo, said the value proposition to digitally transform vendor management and automate complex supply chains has helped several mid to large size enterprises improve operational efficiency. “A razor sharp focus on maintaining high customer satisfaction has accelerated our wallets share among existing customers and brought incremental clientele through word of mouth and referrals. With the pent up festive demand, the company envisages to cross at least $300 million in annualized revenue by end of this fiscal year.”
Ruchira Shukla, Regional Lead, South Asia, International Finance Corporation, an early backer of Bizongo, said the platform’s tech-first, asset-light and capital-efficient business model is helping India’s fragment base of MSME and SME manufacturers manage their entire business on Bizongo’s cloud platform and get access to collateral-free digital working capital solutions. “With this, Bizongo is truly driving digital transformation in the B2B customized goods segment and emerging as an undisputed market leader in the space.”
The company’s average contract value is $2.4 million, three times more as compared to the same period last year. On an average, the business has onboarded more than 10 mid to large sized enterprise customers every month since the pandemic. While the technology firm primarily draws its revenue from Indian customers, it has already started seeing early success in Bangladesh, Thailand, Middle East and the UK where it is working with customers in the healthcare and fashion industry. Bizongo’s international foray is led by its vision to become a global B2B e-commerce leader.
Ahead of a buoyant festive and wedding season starting with Navratri this week, Bizongo is expecting to touch $300 million in annualized revenue by the end of the fiscal year. It is during the festive season particularly that mid to large businesses find it difficult to expand and scale their supply chains in the wake of rising demand. Inventory management challenges like stock outs and overstocking are commonly faced by businesses and directly impacts their top-line, bottom-line and cash flows.
Bizongo offers a full stack cloud platform to digitize vendor base in no time, automate supply chain management and facilitate faster access to working capital for customers’ suppliers. It’s core platforms – Procure Live and Partner Hub – have over 120 enterprise customers and a base of over 3,000 partner factories. Through strong partnerships with over 15 financial institutions, the Supply Chain Financing (SCF) vertical has processed over Rs 200 crore in working capital lines to MSME and SME vendors, registering an 8x growth since last year.
The company is backed by IFC, CDC, BCapital, Chiratae, Accel, Schroder Adveq and AddVentures.