Ecommerce-focused packaging company Bizongo recently undertook a staff reduction, reducing its workforce by approximately 15%. This decision followed closely after Bizongo’s announcement of a successful $50 million funding round. The company stated that these measures were taken to align its resources with its core business objectives and to enhance its strategic focus.
In response to inquiries regarding the layoffs, a spokesperson for Bizongo provided an official statement: “We are driving sharper focus towards key business goals, and in lieu of this, we have reallocated our people. Parting ways with people is never easy, and these are difficult decisions. We are fully committed to extending support to affected employees with the best of our abilities.”
This round of layoffs amounted to roughly 50 employees, with additional layoffs reportedly taking place earlier in 2023. The exact number of affected employees has not been officially disclosed, and Bizongo has refrained from commenting on the previous workforce reductions.
Despite these recent workforce adjustments, Bizongo has been experiencing significant growth in funding. According to startup data intelligence platform TheKredible, the company has secured a total of $260 million in funding. In the most recent funding round, Bizongo’s valuation surged from $600 million to $980 million, positioning the company as a potential unicorn in 2023, following Zepto.
Founded eight years ago, Bizongo offers essential services such as digital vendor management, supply chain automation, and supply chain financing to its enterprise clients. A substantial portion of the raw materials procured by small and enterprise (SME) vendors on the Bizongo platform consists of steel and aluminum.
In the fiscal year 2022, Bizongo reported operating revenue of Rs 1,705 crore, accompanied by a loss of Rs 100 crore. While the audited financial report for FY23 is yet to be filed, the company’s losses remained consistent in the previous fiscal year. Bizongo has set its sights on achieving a profit before tax for the fiscal year ending in March 2024.
