FactoryPlus, a digitisation app for MSME factories, was acquired by Bizongo. Bizongo will welcome Vatsal Rustagi, Sparsh Kovarala, and Bikash Dash from FactoryPlus, along with their team.
Bizongo will provide local manufacturers with the opportunity to obtain raw materials from top vendors at the most competitive prices through this acquisition. Additionally, Bizongo will enable embedded financing on-the-go to support manufacturers in overcoming supply chain difficulties brought on by blocked working capital and delays in the procurement of raw materials.
Through embedded solutions like Insta invoicing, Insta e-waybill, and Insta PoD, among others, Bizongo hopes to connect its supply chain with end users and help businesses improve their cash conversion cycle after the acquisition.
FactoryPlus, an operating system for manufacturers that was co-founded in 2021, aims to use technology to make factories smarter, faster, and more affordable so that factory owners can concentrate more on expanding their businesses and spend less time on manual labour.
Better Capital and Titan Capital, who are leaving the company as part of this acquisition, had contributed to FactoryPlus’s seed round.
FactoryPlus states that it provides services to several industries. Metals, plastic, and paper are the top three categories, accounting for 76% of MSMEs’ raw material demands on the platform. Steel and aluminium account for more than half of the raw materials purchased by SME vendors on Bizongo’s platform, with paper and polymer commanding about 15% of the volume share each.
Additionally, FactoryPlus reports that it has over 4,000 factories on its platform and has experienced growth of 40% month over month.
15% of Bizongo’s staff was let go last month, just after the company announced a $50 million funding round.
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