As it eyes the unicorn status, business-to-business (B2B) raw materials marketplace Bizongo, which is currently valued at $980 million, is enhancing its logistics vertical to boost its platform capabilities.
The logistics arm, launched in November 2023, currently works on an asset-light model with partnerships with vendors, but the startup intends to start owning warehouses in the future.“Rather than owning the vehicles ourselves, we collaborate with transporters and empower them with technology to enhance tracking, turnaround times, and overall reliability. Currently, we do not have our own warehouse network, but we plan to add one in the future,” Sachin Agrawal, chief executive and co-founder at Bizongo, said.
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The logistics service, which is captive to BizongoBuy, the platform’s B2B marketplace, was launched with the objective of adding value to the platform’s customers’ supply chains going beyond a trading platform and providing an end-to-end solution.“Our logistics business is currently focused on enabling end-to-end tracking within the Bizongo platform, ensuring that turnaround times (TATs) are met. By keeping logistics within our ecosystem for now, we can maintain better control, enhance visibility, and optimise delivery timelines,” Agrawal added.
So far, the firm has been able to bring down TAT by 15%. With their own warehousing network, Agrawal believes the TAT can brought down by another 15%, giving the platform a competitive edge.“At present, we operate on a full truck load (FTL) model, picking up shipments directly from suppliers and delivering them,” he said.
Agrawal further said that the market typically waits for the lowest logistics cost before placing vehicles. Bizongo, however, has built partnerships with local transporters near key customer and supply locations, ensuring faster placement and movement of trucks.
Since its launch a little over a year ago, the logistics arm now handles 90% of the marketplace’s business, Agrawal said. While he did not give exact investment numbers on the service, he said the business sits within the marketplace platform’s P&L and will remain so for the time being.
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Bizongo’s P&L is split into two— its marketplace BizongoBuy and its financing platform BizongoFin.BizongoFin was spun off into a separate business unit in September 2024. According to data provided by the startup,
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