FactoryPlus, a digitisation app for MSME factories, has been acquired by vendor-digitisation platform 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 says it serves a variety of industries. The three most popular categories on the platform are metals, plastic, and paper, together accounting for 76% of MSMEs’ raw material demands. Paper and polymer account for roughly 15% of the volume share purchased by SME vendors on Bizongo’s platform, whereas steel and aluminum account for over 50% of the raw material purchases.
Furthermore, FactoryPlus reports that over 4,000 factories are using its platform and that it has experienced 40% month-over-month growth.
Not long after announcing a $50 million funding round, Bizongo laid off 15% of its staff last month.
