Vendor-digitisation platform Bizongo has acquired FactoryPlus, a digitisation app for MSME factories. Vatsal Rustagi, Sparsh Kovarala and Bikash Dash from FactoryPlus along with their team will be joining Bizongo.
Through this acquisition, Bizongo will offer local manufacturers to source raw materials from the best vendors at the lowest possible costs. Further, Bizongo will also facilitate embedded financing on the go to help manufacturers combat delays in raw material procurement and supply chain challenges arising from blocked working capital.
Following the acquisition, Bizongo aims to enable businesses to improve their cash conversion cycle by linking its supply chain with end customers through embedded solutions, such as Insta invoicing, Insta e-waybill, and Insta PoD among others.
Co-founded in 2021, FactoryPlus is an operating system for manufacturers with a goal to make factories smarter, faster, and cost-effective with the help of technology, so that factory owners can spend less time on manual operations and focus more on growing their business.
FactoryPlus had raised a seed round from Better Capital and Titan Capital, who will exit the company as part of this acquisition.
FactoryPlus claims to serve across multiple industries. The top three categories, which constitute 76% of the raw material demand by MSMEs on the platform, are metals, plastic and paper. More than 50% of the raw materials bought by SME vendors on Bizongo’s platform are steel and aluminium while paper and polymer command about 15% volume share each.
FactoryPlus also says that it has seen 40% month-on-month growth and has more than 4,000 factories on its platform.
Last month, Bizongo fired 15% of its workforce shortly after announcing a $50 million funding round.
