Bizongo: An AI-powered platform streamlining supply chains for cos
The Mumbai-based B2B platform helps businesses optimise their supply chains through digital solutions and financing
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![Tushar Kamat, Chief Business Officer, Bizongo Tushar Kamat, Chief Business Officer, Bizongo](https://www.bizzbuzz.news/h-upload/2024/05/20/1905653-tushar.webp)
‘Digitize your vendor ecosystem to unlock your business' true potential. Bring your vendors online and integrate your supply chain with theirs. Give your vendors access to embedded supply chain financing through our financial institution network, all on one AI-powered platform’- this seems to be the mantra that Bizongo offers. Mumbai-headquartered Bizongo missed the unicorn tag by a whisker. But that did not stop its forward moving journey. Founded in 2015, Bizongo offers digital vendor management, supply chain automation and supply chain financing as key services to its enterprise customers.
The platform serves 450-500 enterprise customers in different areas. Bizongo also provides unsecured financing to vendors and according to the company it has tied up with more than 30 banks and non-bank financial companies for loan disbursement. Co-founded by Sachin Agarwal, Ankit Deb, and Ankit Tomar, the company made 96 per cent of its revenue via service fees whereas the remaining part came from design income and platform fees. Bizongo’s revenue from operations grew 98.6 per cent to Rs 166.86 crore during the fiscal year ending March 2023 as compared with Rs 84 crore in FY22. Speaking to Bizz Buzz exclusively, Tushar Kamat, Chief Business Officer at Bizongo, delves at length the fascinating journey of the company and how they plan to grow in the days to come
When was Bizongo floated and by whom?
Three former IITians - Aniket Deb, Sachin Agrawal, and Ankit Tomar came together in 2015 and floated Bizongo.
What was the mission or objective like, when they floated Bizongo?
The three-founder embarked on a mission to transform the fragmented segment of B2B customised goods. Over the years, Bizongo went on to become India’s leading growth-enablement platform, offering enterprises and their vendor businesses the end-to-end digitisation of their supply chains.
Where and how did the founders mobilise the funds to run and operate Bizongo and take it to the level, where it is now?
Bizongo has been funded by Marquee investors like IFC, Tiger Global, Accel Capital, CDC Investment Works, B Capital Group, Schroders, Chiratae, Add Ventures by SCG.
So, what is Bizongo or to put it in another language, what does it basically do?
Bizongo is an AI-based B2B platform offering supply chain financing and integrated raw material buying solutions. Our platform offers a seamless buyer journey, encompassing everything from inquiry and order placement to real-time order tracking and easy financing from over 30 financial institutions and banks-all accessible via a user-friendly mobile app. The mobile app basically acts as an AI-powered platform to give a consolidated view of all suppliers with raw material prices, giving buyers more options to purchase at the right price. This translates into cost savings through optimised procurement and boosts profitability through digitisation of transactions.
What are the products you, at present, deal in?
The company, at present, is dealing in steel, aluminium and copper. However, going forward, we have plans to deal in other products including polymers, textile, agro products, to start with. Let me clarify at this point that it would take some time before we get into these new ranges. Currently, we are focusing on and consolidating our position in business financing, raw material procurement, vendor digitisation.
How much funding do you do per annum, at this point in time, or what is the level of financing you have reached so far?
We have already reached a level of Rs 5000 crore financing annually and it’s going up consistently.
Any new line of business that you got into or are planning to get into to scale up or expand your business?
We have recently got into the business of connecting our clients with potential suppliers and vendors and ensuring their supply chain to expand our business. The clients can avail of both the offers (financing and supply of ingredients/raw materials) as combo offer or either of the two.
What is your vision or plan of action, going forward?
Our vision is to expand our platform to encompass multiple categories within the next three to five years, further enhancing our contribution to our economy's growth story.
So, what do you do actually for your clients, if I may ask you, or how do your clients stand to gain using your platform?
At Bizongo, we empower brands, enterprises, and their vendor businesses with the perfect blend of result-oriented technology and working capital solutions, unlocking fresh paths of success for them. That’s how our clients stand to gain from using our platform.
Who is your target segment? Who do you focus on?
Bizongo, at present, focuses mostly on MSME (companies, typically in the revenue ranges between Rs 200 crore and Rs 1200 to Rs 1500 crore), as it is the segment that often faces more problems than one in accessing organised credit.
So, what do you offer to the MSMEs?
Bizongo Next offers a one-stop business financing mobile-based app for MSMEs (and/or large enterprises, as well) to access over 30 lenders in a single click, 100 per cent digital documentation and quick credit sanction with auto verified data. The B2B SaaS startup distinguishes itself by simplifying the finance application process through integrations to automatically fetch verified bank statements and other documents enabling speed of application and sanctions. Simultaneously, through real-time, verifiable transaction-level data, including movement of goods, credit history, etc, the platform enables financial institutions to improve their underwriting decisions.
Where does Kolkata or Bengal stand vis-a-vis other locations in your scheme of things? How important is this market?
As Kolkata experiences a surge in infrastructure development alongside remarkable reforms in the power sector, the demand for essential raw materials such as steel and aluminium are escalating. Bizongo, a B2B platform offering supply chain financing and integrated raw material buying solutions, is aiming for rapid growth in the region by facilitating quick financing and efficient procurement methods for steel and aluminium buyers.
Kolkata is swiftly emerging as a hub for infrastructural advancements, witnessing a surge in various sectors, from the power and electrification sectors to the residential sector. At Bizongo, we are dedicated to contributing to the economic progress of the city.
Could you explain this more or with more details?
In a significant boost to urban mobility, a range of connectivity projects worth Rs 15,400 crore are planned in Kolkata, with India's first underwater metro line marking a major milestone in the city's infrastructure development. In addition to the city’s infrastructure projects like the Metro, Kolkata also witnessed the launch of 15,303 residential units, recording an impressive 87 per cent year-on-year growth, signifying a proactive response from developers to meet the increasing demand for housing in the city. This multifaceted growth underscores the need for adaptable solutions in procurement and financing, aligning with the city's diverse development landscape.