Bizongo will integrate FactoryPlus’ mobile-first SaaS capabilities like factory inventory management, real-time raw material prices, news feed, and digital catalogues among others into its solution. FactoryPlus’ investors Better Capital and Titan Capital will exit the company as part of this acquisition.
Vendor digitisation startup Bizongo on Tuesday announced the acquisition of FactoryPlus, a factory digitisation app for factories operated by MSMEs to boost its AI offerings to enterprises. With the acquisition, Bizongo will integrate FactoryPlus’ mobile-first SaaS capabilities like factory inventory management, real-time raw material prices, news feed, and digital catalogues among others into its solution. FactoryPlus’ investors Better Capital and Titan Capital will exit the company as part of this acquisition.
Through this acquisition, Bizongo will also offer MSMEs an AI-powered raw material procurement solution, which will enable them to source raw materials from vendors at the least possible costs. Bizongo said it will also facilitate embedded financing to help manufacturers combat delays in raw material procurement and supply chain challenges arising from blocked working capital.
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.”
Vatsal Rustagi, Sparsh Koyarala, and Bikash Dash from FactoryPlus along with their team will join Bizongo. The startup didn’t disclose the transaction details.
Founded in 2021, FactoryPlus aimed at making 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.
“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,” said Vatsal Rustagi, Co-founder and CEO, FactoryPlus.
According to FactoryPlus, it has seen ?40 per cent month-on-month growth and has over 4,000 factories on its platform.
A PwC India survey in June this year on digitising manufacturing noted that Indian companies are showing an upward trend towards adopting analytics and AI with a current implementation rate of 54 per cent. In terms of challenge, though investment in digital technology remains a problem, lack of planning for aligning digital transformation with the organisation’s objectives and implementing digital technology remains a greater challenge for companies to invest in technology solutions.