Bizongo turns profitable; eyes $300 mn in annualised revenue by FY22
Bizongo, a tech-enabled B2B e-commerce platform for customised goods, said that the company has turned profitable while reporting positive EBITDA numbers in September 2021. The technology platform has grown four times since the start of the year, and already surpassed $200 million in annualised revenue.
The B2B marketplace has witnessed exponential business growth in their customer segments across fashion and lifestyle. This is owing to the strong demand for digitisation of the complete supply chain of customised goods. With the pent up festive demand, the company envisages crossing at least $300 million in annualised revenue by end of this fiscal year, said Bizongo Co-founder and CTO Ankit Tomar.
“Our value proposition to digitally transform vendor management and automate complex supply chains has helped several mid to large size enterprises improve operational efficiency,” said Tomar. “A razor-sharp focus on maintaining high customer satisfaction has accelerated our wallet share among existing customers and brought incremental clientele through word of mouth and referrals.”
Bizongo’s business model is rooted in maintaining positive unit economics and generating free cash flow. This has spiralled the technology firm to achieve profitability. The company said it has become a market leader in the customised goods categories such as packaging, textiles, apparels and other contract manufactured goods.
The firm’s average contract value is $2.4 million, three times more as compared to the same period last year. On 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 mn in annualised 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 stockouts 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 digitise vendor base in no time, automate supply chain management and facilitate faster access to working capital for customers’ suppliers.
“Bizongo’s tech-first, asset-light and capital-efficient business model is helping India’s fragmented 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,” said Ruchira Shukla, regional lead, South Asia, International Finance Corporation and an early backer of Bizongo. “With this, Bizongo is truly driving digital transformation in the B2B customised goods segment and emerging as an undisputed market leader in the space.”
Bizongo’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 INR 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.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
