B Capital-backed packaging startup Bizongo bags $30m

Mumbai-based Bizongo, an online B2B marketplace for packaging materials, has raised US$30 million in a series C round led by Swiss hedge fund Schroder Adveq.

Existing investors B Capital, Accel, Chiratae Ventures, and IFC also participated in the financing round, according to a statement.

B Capital and IFC led Bizongo’s US$22 million series B round in 2018.

The Bizongo team / Photo credit: Bizongo

The 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, said its co-founder and CEO Aniket Deb.

Deb, together with co-founders Sachin Agarwal and Ankit Tomar, established Bizongo in 2015 to consolidate the fragmented yet ubiquitous packaging industry in India. It designs, develops, and procures packaging solutions for clients across various markets such as ecommerce, retail, FMCG, and FMCD (fast-moving consumer durable).

Bizongo’s technology offers a unique value proposition in the industry, promising “100% availability of packaging material” at a low inventory, said Agarwal. “This helps clients to reduce their packaging material procurement cost by 2% to 5% and, at the same time, ensures better production planning for our supply partners.”

On its website, Bizongo says it currently works with over 750 manufacturers in India, serving more than 350 brands across roughly 200 product categories. These include companies such as Flipkart, Swiggy, Xiaomi, Snapdeal, and Delhivery.

According to a study by 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.

Other players in the space include Zomato-backed HyperPure, AdUrCup, and Pafco, among others.