Catching up with Aniket Deb from Bizongo
As industries around the world catch up with the wave of digital transformation, the B2B segment of personalized products continues to grow in India. Bizongo is playing a pivotal role in reshaping this space with its proprietary digital platforms for digital supplier management, supply chain automation, and supply chain finance. Last I heard, the organization reported 5X growth in revenue from pre-pandemic levels.
Analytics India Magazine met with Bizongo COO and Co-Founder Aniket Deb to gain insight into Bizongo’s offerings and the company’s impact on the Indian landscape.
Register for this Session>>
AIM: What role has technology played in the growth of Bizongo?
Aniket: Technology is at the heart of all of our operations, and we are very proud to call ourselves a technology-based B2B e-commerce platform for personalized products. Our business model is primarily focused on delivering a technology-driven strategy versus a commerce-driven approach through cloud-based digital vendor management, supply chain automation, and finance. of the supply chain. This approach has helped us become profitable while posting positive EBITDA numbers exceeding $ 200 million in September 2021.
Additionally, during COVID-19, when the market for many goods and services slowed down, B2B SaaS solutions were increasingly adopted due to changing remote working habits and consumer consumption patterns and enterprises. As we envision digitally transforming the fragmented and unorganized yet unique B2B segment of custom products, our technological capabilities have enabled us to address issues faced by manufacturers and buyers and bridge the gap between the two communities. Particularly during the pandemic when supply chains have been strained, our robust technology platforms have helped businesses automate the process, keep the system operational, and prepare to meet critical consumer needs in this regard. crisis period.
OBJECTIVE: Tell us about your flagship products and services.
Aniket: Focusing on packaging, textiles, apparel and other contract manufacturing products, we have developed proprietary digital platforms that allow us to offer end-to-end B2B e-commerce solutions, from management of suppliers to supply chain automation and sourcing. chain financing.
Our first platform, Partner Hub, brings together the largest network of manufacturers in India for custom products, enabling manufacturers and sellers to maximize resources. About 34% of business productivity is spent on streamlining processes, and that number is only increasing as businesses grow. Here, Partner Hub brings together all the fragments of PO acceptance, inventory management, and tracking of multiple shipments and offers a clear, actionable dashboard with real-time status updates. the command and actions required to speed up the process.
Our next offering is the Procure Live platform, which understands the complex procurement process and solves a host of challenges for buyers, such as dealing with multiple stakeholders, lack of accurate data, finding the right suppliers and management of distributed payments, among others. This next-generation digital platform is transforming the way businesses source and manage inventory and automate the procurement workflow while keeping costs under control using the auto-replenishment feature. This enables businesses to achieve higher returns by optimizing total cost of ownership, managing bandwidth, increasing inventory availability to 100%, and avoiding stockouts.
Finally, our packaging design and artwork management platform, Artwork Flow, adds the final piece to the B2B e-commerce puzzle. The cloud-based platform helps the whole team get to one place, verify artwork faster, and manage assets in one place, which means faster approvals, fewer iterations, more productivity and faster time to market.
GOAL: How is Bizongo contributing to India’s growing data science ecosystem?
Aniket: At Bizongo, we process and automate large amounts of data from our digital supplier management and supply chain automation software. Analyzing this data helps us personalize our service offerings and connect businesses with the provider. In addition, it also helps us understand supplier behavior patterns and enables us to make informed decisions for supply chain finance. Holistic on-demand data of the various products a company offers helps in proper allocation of resources and achieving maximum profit for our partners. In addition, the demand for personalized packaging has increased and to meet this demand, a careful study of customer preferences is essential. We use all the data we collect to bring more customization options to our product offerings.
GOAL: What do you think about the battlefield of technology companies in the B2B e-commerce sector in India?
Aniket: B2B e-commerce is a $ 500 billion industry, and globally this market is much larger, at least six times, than B2C e-commerce. In the current context, technological players are increasingly gaining the trust and support of investors. Despite the disruption caused by the pandemic, B2B e-commerce platforms such as Bizongo have supported their profitability and their path to a positive unity economy through their technology and innovative IP solutions.
In the last 18 months of the pandemic, adopting a digital and automated supply chain ecosystem through platform-based methods has become the key to business growth for merchants, resellers , wholesalers and retailers. According to a study by Marketwatch, 72% of manufacturers have increased their spending on B2B e-commerce operations. I believe this untapped opportunity makes B2B e-commerce a lucrative space for tech companies and investors.
AIM: What is the positive unit economy, according to Bizongo?
Aniket: For Bizongo, the positive unit economy maintains a positive contribution margin per unit for orders through our suppliers. We have always maintained a positive unit economy and will continue to do so. The lifetime value that we offer to our customers is very high, as well as the net NPV. We don’t spend too much money on marketing or customer acquisition, which helps us maintain a healthy unit economy. We released positive EBITDA figures in September 2021 and became profitable.
GOAL: Tell us about your experience providing digital services for the purchase of healthcare equipment during the COVID-19 pandemic.
Aniket: Very early on, we realized that the PPE ecosystem was very similar to that of the other custom goods segments we were responding to. Manufacturing was fragmented; access to quality suppliers guaranteed on time and complete delivery was very low. To facilitate the critical purchasing process, we quickly onboarded quality suppliers and digitally equipped them on our platform. As a result, we were able to give hospitals, NGOs and other buyers full visibility into their PPE product purchases and put an end to all the hassle. Through fundraising campaigns and quick links with NGOs and trusts, we were able to match funds to even the most critical procurement requirements.
OBJECTIVE: Your customers are made up of large companies. What challenges have you encountered in meeting different needs?
Aniket: We saw it because of the scale of the operations; most large companies have long-standing relationships with their suppliers. Given these relationships, companies find it difficult to switch suppliers or disclose information about their suppliers to external parties, even if it is necessary to adopt technology to improve efficiency. Here we have built a robust ecosystem allowing our customers to digitally choose and manage their existing supplier base and even connect with new suppliers as needed. At the same time, we also recommend that these companies focus on optimizing overall process costs, rather than improving the prices of individual products, as this has a significant impact on the life cycle.
GOAL: How do you plan to use the last round of funding?
Aniket: With the last round of funding, we have made efforts to expand our modular digital service offerings to other industries, such as apparel and textiles, in the custom products segment. With the aim of putting Bizongo on the world map, we are also gradually expanding into Southeast Asia and other international markets.
GOAL: Develop the Bizongo expansion roadmap.
Aniket: As mentioned earlier, we strategically plan to expand our services into international markets, starting with Thailand, Vietnam, Indonesia, Singapore and the rest of Southeast Asia. We will study the acceptability and uptake of our services and plan for future expansion accordingly. We also aim to take advantage of this expansion to boost the huge manufacturing potential of Indian MSMEs and meet demand from the Middle East, Europe and the United States. Recently, we also created our advisory board and brought in industry veteran and Asian Paints vice president Manish Choksi. As we look to the future, our goal is to transform Bizongo into the most ambitious B2B tech company with a people-centric approach and a strong work culture.
Subscribe to our newsletter
Receive the latest updates and relevant offers by sharing your email.
Join our Telegram Group. Be part of an engaging community