Bizongo Scales to Rs. 167 Cr in FY23, Expands Scope and Nearly Rs. 300 Cr Deficit Recorded


Three points you will get to know in this article:

  • Bizongo doubled its revenue in FY23 but faced a significant increase in losses, soaring by 2.7 times.
  • Core operations and financial assets brought in 166.86 crore and 185 crore respectively in revenue.
  • Bizongo demonstrated resilience and improved operating cash outflows despite financial challenges.
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About Bizongo

Bizongo is a dynamic company that operates as a growth-enablement platform, focusing on the realm of business-to-business (B2B) customized goods. Their mission is clear: to revolutionize this sector through the strategic application of technology and financial solutions that yield tangible results. Founded in 2015 by Aniket Deb, Sachin Agrawal, and Ankit Tomar, Bizongo was born out of a vision to address the challenges within the B2B landscape and offer transformative solutions to businesses and vendors alike. The core essence of Bizongo’s operations lies in empowering brands, enterprises, and their vendor businesses. They achieve this through a finely crafted blend of cutting-edge technology and innovative financial strategies. By leveraging these tools effectively, Bizongo aims to open up new avenues of success for their clients, enabling them to thrive in an increasingly competitive market environment.

One of the standout features of Bizongo is its commitment to end-to-end digitization of supply chains. This means that they provide comprehensive solutions that cover every aspect of the supply chain process, from procurement to distribution. By digitizing these processes, Bizongo helps streamline operations, reduce inefficiencies, and drive growth for their clients.

Bizongo's Financial Performance in FY23 Bizongo

In the bustling world of e-commerce, Bizongo, a packaging company with a laser focus on meeting online businesses’ needs, achieved a remarkable feat by doubling its revenue in FY23. However, this upward trajectory came with its share of challenges, as evidenced by a significant increase in losses, which soared 2.7 times during the same period.

Despite the hurdles, Bizongo’s revenue from operations experienced an impressive surge of 98.6%, reaching Rs 166.86 crore by the end of the fiscal year in March 2023, compared to Rs 84 crore in FY22. This growth underscores the company’s resilience and adaptability in navigating the dynamic landscape of the e-commerce industry.

Established back in 2015, Bizongo is dedicated to delivering top-notch digital vendor management, supply chain automation, and supply chain financing services to its esteemed enterprise clientele. Specializing in serving 450-500 enterprise customers spanning across fashion & lifestyle, pharmaceuticals, consumer discretionary, consumer staples, and more, Bizongo stands out as a trusted platform.

Moreover, Bizongo goes the extra mile by extending unsecured financing options to vendors. According to the company, it has established partnerships with over 40 banks and non-bank financial institutions to facilitate loan disbursement efficiently.

Diverse Revenue Streams and Challenges

This innovative venture was co-founded by Sachin Agarwal, Ankit Deb, and Ankit Tomar. Impressively, a significant chunk, precisely 96%, of Bizongo’s revenue is generated through service fees, while the rest is derived from design income and platform fees, showcasing their diverse revenue streams.

Throughout the fiscal year FY23, Bizongo saw a significant boost in its revenue, reaching a remarkable Rs 185 crore. This surge was fueled not only by its core operations but also by earning approximately Rs 18.15 crore through interest and gains on financial assets.

However, this growth came with its own set of challenges. A notable portion, 32% to be precise, of the company’s expenses were allocated towards finance costs. These costs primarily comprised interest on bill discounting, interest on working capital demand loans, and interest on debentures. Impressively, these expenses surged by a staggering 3-9 times, ballooning to Rs 151.95 crore in FY23 from a comparatively modest Rs 38.8 crore in FY22.

Despite the financial strain, Bizongo remains resilient, navigating through the complexities of fiscal management with a determined spirit.

In the fiscal year FY23, there was a noticeable 79.4% increase in employee benefit costs, amounting to Rs 113.23 crore. This figure encompasses ESOP expenses totaling Rs 27.12 crore. Additionally, the company accounted for an allowance of expected credit loss, totaling Rs 124 crore during the same period. Reflecting these expenditures, the company’s overall outlay surged by 97.1% to reach Rs 476.6 crore in FY23, up from Rs 241.8 crore in FY22.

Enhanced Cash Outflows and Performance Indicators

Despite facing significant cash burn, the company experienced a stark rise in losses, soaring by 173.1% to Rs 291.57 crore during FY23 compared to Rs 106.76 crore in FY22. However, there was a silver lining in the form of improved operating cash outflows, which saw a 29.6% enhancement to reach Rs 646.3 crore during the last fiscal year.

The company’s performance indicators paint a challenging picture, with the EBITDA margin and ROCE standing at -73.06% and -27.60%, respectively, for the year. Looking at it from a unit perspective, Bizongo spent Rs 2.86 to earn a rupee of operating revenue in FY23.

Despite doubling its revenue and showcasing resilience in its operations, Bizongo faced significant challenges, as evidenced by a noteworthy increase in losses, soaring by 2.7 times in FY23. The company’s revenue from operations surged impressively, reflectinB2g its adaptability in the e-commerce industry. However, with a notable rise in finance costs, employee benefit expenses, and an allowance for expected credit loss, Bizongo navigated through fiscal complexities with determination. The company experienced improved operating cash outflows but encountered challenging performance indicators, including -73.06% EBITDA margin and -27.60% ROCE, and a spending of Rs 2.86 for every rupee of operating revenue in FY23.

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