Bizongo, a startup specialising in vendor digitisation, revealed its acquisition of FactoryPlus, an app designed for digitising factories catering to MSMEs. This move aims to enhance Bizongo's AI offerings for enterprises. Through this acquisition, Bizongo plans to integrate FactoryPlus' mobile-first SaaS capabilities, including features such as factory inventory management, real-time raw material prices, news feeds, and digital catalogs, into its existing solution. As part of the deal, investors Better Capital and Titan Capital will exit FactoryPlus.

The integration of FactoryPlus into Bizongo's platform will enable the provision of an AI-powered raw material procurement solution for MSMEs, allowing them to source raw materials from vendors at optimal costs. Additionally, Bizongo intends to facilitate embedded financing to assist manufacturers in overcoming delays in raw material procurement and addressing supply chain challenges linked to blocked working capital.

Sachin Agrawal, Co-founder and CEO of Bizongo, emphasised the importance of addressing the digital transformation challenges faced by MSMEs. He highlighted the role of technology in advancing the MSME sector, emphasising the need for digital processes and automated technologies.

As part of the acquisition, Vatsal Rustagi, Sparsh Koyarala, and Bikash Dash, along with their team from FactoryPlus, will join Bizongo. While specific transaction details were not disclosed, Bizongo expressed its commitment to supporting MSMEs by leveraging technology to enhance efficiency and drive growth.

FactoryPlus, founded in 2021, aimed to make factories smarter, faster, and more cost-effective through the application of technology. The platform has experienced significant growth, with over 4,000 factories on board, witnessing a monthly growth rate of 40%. Vatsal Rustagi, Co-founder and CEO of FactoryPlus, expressed enthusiasm about the integration with Bizongo, anticipating the expansion of technology-led efficiency within factories and the development of data-driven industrial supply chains.

The move aligns with the broader trend in India, where companies are increasingly adopting analytics and AI, as noted in a PwC India survey in June. While there is a positive trend in embracing digital technologies, challenges such as investment constraints and the need for strategic alignment with organisational objectives continue to be significant considerations for companies investing in technology solutions.

Source: The Financial Express