The acquisition will help Bizongo digitalise the businesses of MSME platforms through a mobile solution, the company said in a statement.
Tiger Global-backed vendor digitisation platform Bizongo on Tuesday said it has acquired Titan Capital-backed FactoryPlus, a factory digitisation app for micro, small and medium enterprises (MSMEs). The acquisition will help Bizongo digitalise the businesses of MSME platforms through a mobile solution, the company said in a statement. It didn’t disclose financial terms of the transaction.
FactoryPlus co-founders Vatsal Rustagi, Sparsh Koyarala, and Bikash Dash, along with their team, will be joining Bizongo after the acquisition.
FactoryPlus is Bizongo’s third acquisition. Last year, the company acquired Mumbai-based Internet of Things and real-time location services provider Clean Slate Technologies and Bengaluru-based cloud platform for college placements Hexa.
The acquisition comes on the heels of Bizongo reportedly raising nearly $50 million in its Series E funding round led by Swiss private equity firm Schroder Adveq. International Finance Corporation, Chiratae Ventures, B Capital and British International Investment participated in this round.
Bizongo said it plans to integrate FactoryPlus’ mobile-first software-as-a-service (SaaS) capabilities such as factory inventory management, real-time raw material prices, news feed, and digital catalogues, among others.
The acquisition will help Bizongo to offer local manufacturers an AI-powered solution that will enable them to source raw materials. Further, it will also facilitate embedded financing for manufacturers.
“Digital processes and automated technologies are the need of the hour for vendors to thrive in an increasingly competitive landscape and this is a key step in that direction,"
said Sachin Agrawal, co-founder and CEO, Bizongo.
“With this acquisition of FactoryPlus, we aim to empower manufacturers with tailored solutions, such as digital raw material consolidation and embedded financing that can be seamlessly integrated into their supply chain and help them contribute to the country’s economic future,"
he said.
FactoryPlus was founded in 2021 as an operating system for manufacturers to make factories smarter, faster and more cost-effective. It raised a seed round of funding from Better Capital and Titan Capital. The two investors will exit the company as part of this acquisition.
The company works with multiple industries, with the top three categories – metals, plastic and paper – constituting 76% of the raw material demand by MSMEs on the platform. It claims that it has seen 40% month-on-month growth and has over 4,000 factories registered on its platform.
Source: Mint
