As it moves toward unicorn status, B2B raw materials marketplace Bizongo, currently valued at $980 million, is strengthening its logistics vertical to enhance platform capabilities.
Launched in November 2023, the logistics division operates on an asset-light model, collaborating with vendors rather than owning transport vehicles. However, the company plans to establish its own warehousing network in the future. Chief executive and co-founder Sachin Agrawal explained that rather than owning trucks, Bizongo partners with transporters, equipping them with technology to improve tracking, turnaround times, and reliability. While warehouses are not yet part of the infrastructure, plans are in place to introduce them.
The logistics service is integrated within BizongoBuy, the platform’s B2B marketplace, with the goal of adding value to customers’ supply chains beyond just being a trading platform. By keeping logistics within its ecosystem, the company aims to maintain better control, increase visibility, and optimize delivery timelines. The firm has already reduced turnaround times by 15%. Agrawal believes that with its own warehouses, Bizongo can achieve an additional 15% reduction, creating a competitive edge.
Currently, the company operates on a full truckload (FTL) model, collecting shipments directly from suppliers and delivering them. The market typically waits for the lowest logistics cost before dispatching vehicles, but Bizongo has developed partnerships with local transporters near key customer and supply locations to ensure faster truck placement and movement.
Since its launch, the logistics division now manages 90% of the marketplace’s operations. While specific investment figures were not disclosed, the logistics business remains within the marketplace platform’s profit and loss statement for now.
Bizongo’s financial operations are divided into two main segments—BizongoBuy, its marketplace, and BizongoFin, its financing platform. In September 2024, BizongoFin was spun off into a separate business unit. The financing segment has more than 30 NBFCs on its platform, with Rs 14,000 crore disbursed to date.
For the financial year ending March 2023, the company recorded Rs 167 crore in operating revenue, nearly doubling from the previous year. However, increased finance and employee costs led to a 97% year-on-year increase in net losses, reaching Rs 477 crore. Financial results for FY24 have not yet been released.
