Business-to-business vendor management startup Bizongo has acquired Noida-based FactoryPlus, a factory digitisation application for micro, small and medium enterprises (MSMEs), to offer digitisation solutions to MSMEs.
However, the startup did not disclose the financial terms of the deal.
Bizongo plans to integrate FactoryPlus’ mobile-first SaaS capabilities like factory inventory management, real-time raw material prices, news feed and digital catalogues, among others, the company said in a statement.
The acquisition will allow it to offer local manufacturers an artificial intelligence-powered raw material procurement solution to help them source raw materials at the least possible costs.
It also aims to facilitate embedded financing on the go to help manufacturers combat delays in the procurement and other supply chain challenges that arise from blocked working capital.
Founded in 2021 FactoryPlus offers an operating system for manufacturers with a goal to make factories smarter, faster, and cost-effective with the help of technology. It enables the factory owners to save time and operating expenses by decreasing the manual processes.
As a part of the acquisition, FactoryPlus founders Vatsal Rustagi, Sparsh Koyarala, and Bikash Dash will join Bizongo. The deal will also give an exit to its investors Better Capital and Titan Capital.
“With this acquisition of FactoryPlus, we aim to empower manufacturers with tailored solutions, such as digital raw material consolidation and embedded financing that can be seamlessly integrated into their supply chain and help them contribute to the country’s economic future,” said Bizongo cofounder and Chief Executive Officer Sachin Agrawal.
He also said that MSMEs have always had trouble in getting digitised. But digital processes and automated technologies are the need of the hour for vendors, and thus, technology plays a crucial role to help them thrive in an increasingly competitive landscape and this is a key step in that direction.
Founded in 2015 by Agarwal, Aniket Deb, and Ankit Tomar, Bizongo offers a tech-enabled B2B platform to help businesses with vendor management, supply-chain automation and financing solutions.
Bizongo also aims to offer embedded services such as Insta invoicing, Insta e-waybill, and Insta PoD among others to enable businesses to improve their cash conversion cycle by linking their supply chain with end customers.
FactoryPlus claims to serve multiple industries but counts metals, plastic and paper as the top three categories as those make up 76% of the raw materials demand across MSMEs. The startup claims to have seen 40% M-on-M growth and has 4000+ factories on its platform.
Interestingly, this acquisition comes after Bizongo laid off about 50 people out of its 413 employees, which the startup said is a part of its focus on driving key business goals.
Just a day prior to layoffs, Bizongo announced the raise of nearly $50 Mn in its Series E funding round.
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