Vendor digitisation startup Bizongo has acquired FactoryPlus, a factory digitisation app catering to MSMEs, in a strategic move to bolster its AI offerings to enterprises. As part of the acquisition, Bizongo will integrate FactoryPlus’ mobile-first Software as a Service (SaaS) capabilities, encompassing features like factory inventory management, real-time raw material prices, news feeds, and digital catalogues, into its solution. The acquisition also marks the exit of FactoryPlus’ investors Better Capital and Titan Capital.
AI-Powered Raw Material Procurement: Through this acquisition, Bizongo aims to provide MSMEs with an AI-powered solution for raw material procurement, allowing them to source materials from vendors at optimal costs. Additionally, Bizongo plans to facilitate embedded financing to assist manufacturers in overcoming delays in raw material procurement and addressing supply chain challenges linked to blocked working capital.
Empowering MSMEs Through Digital Transformation: Sachin Agrawal, Co-founder and CEO of Bizongo, emphasized the importance of technology in driving the MSME sector forward, addressing the challenges faced by these businesses in embracing digital transformation. The integration of digital processes and automated technologies is seen as a pivotal step to empower vendors in a competitive landscape.
Joining Forces with FactoryPlus: Vatsal Rustagi, Sparsh Koyarala, and Bikash Dash, along with their team from FactoryPlus, will join Bizongo through the acquisition. While the transaction details were not disclosed, the move is expected to elevate technology-led efficiency within factories and foster data-driven industrial supply chains.
FactoryPlus Growth and Vision: Founded in 2021, FactoryPlus has witnessed impressive month-on-month growth of 40% and has established a presence with over 4,000 factories on its platform. Vatsal Rustagi, Co-founder and CEO of FactoryPlus, expressed optimism about integrating their product with Bizongo, foreseeing an enhanced ability to drive efficiency and advance technology adoption in factories.
Industry Trends and Challenges: A PwC India survey highlighted the growing trend of Indian companies adopting analytics and AI, with a current implementation rate of 54%. However, challenges persist, including investment hurdles and the need for better alignment of digital transformation with organizational objectives, posing barriers for companies investing in technology solutions.