Mumbai based startup Bizongo, which offers online packaging solution to small & big companies, has raised $22 Mn in Series B round of funding. The funding was led by B Capital and International Finance Corporation (IFC). B Capital is a high profile investment firm, since it is owned by Facebook co-founder Eduardo Saverin.
Existing investors Accel Partners and IDG Ventures also participated in the round. Following the latest round, Bizongo’s total funding has reached to $25 Mn. It last raised funds in November 2016, when it was able to secure $3 Mn from various investors.
The startup has made it clear that most of the $25 Mn funds will be invested in technological platform and design functions.
Bizongo: Trying to revolutionize India’s packaging industry
Bizongo was incorporated in 2015 by three IIT graduates – Aniket Deb, Sachin Agrawal and Ankit Tomar – with an aim to revolutionize India’s packaging industry. Bizongo, which is a short form of Business on the go, essentially curates well known packaging manufactures and offers affordable packaging services to SME’s as well as big companies.
The startup is counting on conducive factors like consistent economic growth and growth of new age sectors like e-commerce to crack India’s $40 billion packaging industry. It claims that more than 2,500 packaging companies are registered on its platform and boosts popular companies like Myntra, Tata Cliq and FirstCry amongst its clients.
However, India’s highly unorganized packaging industry poses as much a challenge as great opportunity to Bizongo. Probably the biggest challenge is that even today most companies prefer to source their packaging needs from local vendors than from online platform.
However, startups in this space can still manage to remain upbeat, considering the fact that internet penetration and technological growth in India is happening in leaps and bounce.