Bizongo acquires FactoryPlus; enables plug-and-play digitization of MSME factory operations

~Integrates mobile SaaS app to provide local manufacturers with access to automation and real-time updates~

Bizongo, India’s leading vendor-digitisation platform has announced the acquisition of FactoryPlus, a factory digitization app for MSME factories. The acquisition comes on the heels of Bizongo’s vision to enable ‘Business on the go’ and provide MSMEs an avenue to embrace digitisation through a user-friendly mobile solution. Vatsal Rustagi, Sparsh Koyarala, and Bikash Dash from FactoryPlus along with their team will be joining Bizongo.

Bizongo plans to integrate FactoryPlus’ mobile-first SaaS capabilities like factory inventory management, real time raw material prices, news feed, and digital catalogs among others. Through this acquisition, the company will offer local manufacturers an AI powered raw material procurement solution, which will enable them to source raw materials from the best vendors at the least possible costs. Further, Bizongo will also facilitate embedded financing on the go to help manufacturers combat delays in raw material procurement and supply chain challenges arising from blocked working capital.

Following the acquisition, Bizongo aims to enable businesses to improve their cash conversion cycle by truly linking their supply chain with end customers through embedded solutions, such as Insta invoicing, Insta e-waybill, and Insta PoD among others.

While the manufacturing sector in India is expected to grow due to an increase in digital commerce, surging domestic consumption, China plus one opportunity, PLIs, and other favorable government reforms, these factors also bring some challenges. Manual factory operations, poor procurement of raw materials, lack of working capital and irregular demand among others demonstrate the need for innovative digital solutions. With MSMEs increasingly hungry for growth, FactoryPlus’ mobile-friendly app will assist in rapidly digitizing their manufacturing operations without requiring substantial monetary and time investments.

FactoryPlus was founded by Vatsal, Bikash and Sparsh in 2021 as an operating system for manufacturers with a goal to make factories smarter, faster, and cost-effective with the help of technology, so that factory owners can spend less time on manual operations and focus more on growing their business. FactoryPlus had raised a seed round from Better Capital and Titan Capital, who will exit the company as part of this acquisition.

Sachin Agrawal, Co-founder and CEO, Bizongo said, “In order to support MSMEs’ ongoing success and expansion, it is crucial to address the critical issue of MSMEs’ continued difficulty in embracing digital transformation. This is where technology plays a key role in driving the MSME sector forward. Digital processes and automated technologies are the need of the hour for vendors to thrive in an increasingly competitive landscape and this is a key step in that direction. With this acquisition of FactoryPlus, we aim to empower manufacturers with tailored solutions, such as digital raw material consolidation and embedded financing that can be seamlessly integrated into their supply chain and help them contribute to the country’s economic future.”

Vatsal Rustagi, Co-founder and CEO, FactoryPlus said, “Building FactoryPlus has been an exciting journey for us. Our product is being used as a daily driver for manufacturing operations by multiple stakeholders in factories across India. Integration with an industry leader like Bizongo will help take this idea to new heights and help unleash technology led efficiency inside the factories and build data driven industrial supply chains”

FactoryPlus serves across multiple industries, however the top three categories which contribute to 76% of the raw materials purchased by MSMEs on FactoryPlus platform are metals, plastic and paper. More than 50% of the raw materials bought by SME vendors on Bizongo’s platform are steel and aluminum while paper and polymer command about 15% volume share each. FactoryPlus has seen ‌40% M-on-M growth and has 4000+ factories on their platform.