Bizongo, one of the largest online business-to-business markets for packaging needs in India, has raised $ 30 million in a new round of financing as it seeks to expand its presence in the country and serve more categories.
The new round of financing, Series C, was led by Swiss hedge fund Schroder Adveq, which manages assets worth $ 10 billion. Existing investors B Capital, Accel, Chiratae Ventures and IFC also participated in the round, the startup said.
Based in Mumbai Bizongo has raised about $ 56 million to date. It was valued at about $ 96 million in its Series B financing round in 2018, according to an analysis of its regulatory records.
The five-year startup acts as a market for companies to identify, buy and sell packaging materials solutions in all sectors. It also offers packaging design, development and acquisition solutions.
Sachin Agarwal, director of operations and co-founder of Bizongo, said the startup offers a unique value proposition that promises “100% availability of packaging material and lack of stock with very low stock”.
“This helps customers to reduce the cost of purchasing packaging material by 2-5% and, at the same time, ensures better production planning for our supply partners. This creates a strong value proposition for all stakeholders across the value chain, ”he said in a statement.
Bizongo did not disclose how many customers it had, but said they span some of the country's leading e-commerce, retail, FMCG and FMCD industries. On its website, it says it works with more than 750 manufacturers in India and has delivered 290 million packaging units to date. He also claims to have served more than 350 brands.
In a statement, Aniket Deb, Bizongo's chief executive and co-founder, said the startup has witnessed “a significant improvement in operational metrics since the last financing round and the current round will help us expand business in a sustainable manner. "
The new fund will be implemented to increase the technological infrastructure and expand to newer sectors, such as pharmaceutical packaging. Deb said the startup also plans to work to expand its presence in the country.
“We believe in the vision of the founders who are transforming and digitalizing the highly fragmented B2B packaging market, taking advantage of technology and an exclusive supply chain efficiency solution. Bizongo showed strong momentum by continuing to add famous customers and we were impressed by the company's rapid growth trajectory last year, "said Kabir Narang, general partner at B Capital Group, in a statement.