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B2B vendor management startup Bizongo's FY23 revenue doubles to Rs 166Cr; Losses stand at Rs 291Cr

Sumit Vishwakarma
New Update
Bizongo's FY23

Bizongo, a vendor digitization and embedded finance platform, has doubled its operating revenue to Rs 166.9 crore in FY23. The growth, however, came at a steep cost, as the startup's consolidated net loss more than doubled to Rs 291.6 crore from Rs 106.8 crore in FY22. 

The increase in losses was attributed to a substantial rise in various expense categories.

The high cost of expansion

The startup's expansion efforts, including its business growth in Southeast Asia and customer base enlargement for its supply chain business, were partly funded by a $25 million injection from Liquidity Group.


Yet, this expansion led to a dramatic increase in total expenses, which surged over 97% to Rs 476.6 crore. Finance costs, which increased by almost 300% to Rs 151.9 crore, and employee benefits, rising 79.4% to Rs 113.2 crore, were the primary drivers of this surge.

Diverse revenue streams  

Bizongo's revenue model is primarily based on service fees, contributing Rs 161.2 crore to its earnings. Additional revenue streams include design income and platform fees, alongside a minor portion of international sales.

In a strategic move to bolster its offerings, Bizongo acquired FactoryPlus, a factory-digitization application for MSMEs, aiming to enhance digitization solutions for its clients.

Targeting profitability 

Despite the financial downturn, Bizongo is focusing on operational efficiency and aims to achieve profitability by the end of FY24. To this end, Bizongo is streamlining its operations and has laid off about 50 employees as part of its broader restructuring efforts amid the ongoing funding winter.

Last month, The startup launched 'Next by Bizongo', a comprehensive business financing app designed for MSMEs, SMEs, and large enterprises.