Bizongo, a Mumbai-based online business-to-business marketplace for packaging, has secured US$30 million in its Series C funding round as it looks to expand its footprint in India and serve more categories.
The company 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 filings.
The new financing round, Series C, was led by Switzerland-based hedge fund Schroder Adveq, which manages assets worth $10 billion. The International Finance Corporation, Accel, Chiratae Ventures, and venture capital firm B Capital Group have participated in the funding.
The five-year-old startup plans to use the new funds to further enhance its technology, extend its footprint in India, and expand into new sectors such as pharmaceutical packaging.
Sachin Agarwal, chief operating officer and co-founder of Bizongo, said the startup offers a unique value proposition of promising a “100% availability of packaging material and no-stock-outs at very low inventory.”
“This helps clients to reduce their packaging material procurement cost 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.
In a statement, Aniket Deb, chief executive and co-founder of Bizongo, said the startup has witnessed a “significant improvement in operating metrics since the last round of financing and the current round will further help us grow the business in a sustainable way.”
According to a study by the Indian industry body ASSOCHAM and consultancy services firm EY India, the market size of the country’s packaging industry is expected to reach roughly US$72.6 billion by full-year 2020 on the back of the country’s rising population and income levels.
BazaarNXT, a Bengaluru-based procurement firm, is also looking to capitalize on the growing industry after raising US$450,000 in seed money from angel investors in Singapore and India. Focusing on the food and beverage sector, its platform offers meal containers, trays, and bags as well as some kitchen essentials, among other things.
“We believe in the vision of the founders who are transforming and digitizing the highly fragmented B2B packaging marketplace by leveraging technology and a unique supply chain efficiency solution. Bizongo has demonstrated strong momentum by continuing to add marquee clients and we have been impressed with the company’s rapid growth trajectory over the past year,” said Kabir Narang, General Partner at B Capital Group, in a statement.