MUMBAI: Signalling a formidable collaboration between new economy technology firms and government enterprises to transform India’s B2B eCommerce landscape, Accel and IFC-backed Bizongo announced the signing of an MoU with National Aluminium Company Ltd (NALCO), a Navratna Central Public Sector Enterprise (CPSE), and one of the largest bauxite, alumina, aluminium and power complex in the country.
Bizongo will leverage its state-of-the-art B2B e-commerce marketplace (BizongoBuy) and embedded finance solutions (BizongoFin), to distribute multiple non-ferrous products such as Ingots, T. Ingots, Sows, Billets and Wire rods, sourced from NALCO, to meet the burgeoning demand for the metal across power, engineering, transportation, construction, wires & cables, and extrusion industries, an official release said.
Bizongo is the only B2B e-commerce marketplace in the country to have surpassed the monthly distribution of 1,500-2,000 MT within the first quarter during the annual bid process this year, following which the technology company has been moved to among the top-most category of NALCO’s distributors, handling over 3,000 MT per month. Bizongo is slated to distribute over 27,000 MT of aluminium by March 2025, the release said.
The new economy-govt partnership comes at a time when India is gearing up to meet a substantially high demand for the non-ferrous metal, in line with the projected high GDP growth. Several initiatives of the Government such as Make in India, 100% rural electrification, Housing for All, Smart Cities, National infrastructure pipeline of Rs 100 lakh crore, renewable energy and FAME (Faster adoption of manufacturing of Hybrid and EV) schemes for electric vehicles, increase in FDI etc. are expected to contribute to boost the consumption of the metal in the country, as per projections of the Ministry of Mines, it said.
Currently India’s per capita consumption of aluminium is around 2.5 kg, which is much lower than the world average of 11 kg and 31.7 kg as compared to China. While aluminium represents the third largest metal market in the world after iron and steel, in terms of price per kg, it is the most expensive — about 240 per kg, at least 3 to 4 times more than steel and iron. Owing to its high price, non-digitized sources of procurement have an impact on cash flow. Further, the industry typically operates on a 100% advance payment at the time of purchase, which often blocks or limits working capital needs for industrial buyers. Addressing these, Bizongo’s tech-first platform offers the right time, right price and real time visibility during distribution for the benefit of industrial buyers. Further its robust financing solutions, enable smoother transactions and ease working capital needs of NALCO’s customers.
Sachin Agrawal, co-founder & CEO, Bizongo, said, “It is indeed a matter of honour that within just three quarters of operations, Bizongo has emerged as one of the key distribution and financing platforms for NALCO’s customers. Being entrusted as among the top tier distributors by NALCO is a testimony to our deep understanding of B2B marketplaces and supply chain financing solutions. This collaboration reflects a coming together of technology companies and government enterprises to unleash the disruptive power of technology in simplifying B2B businesses and powering industrial growth.”
Prahlad Krishnamurthi, CEO, BizongoBuy, said, “Our partnership with NALCO not only strengthens our position in the raw material procurement but also empowers SMEs and corporates to access premium-quality materials predictably. The platform’s tech-first approach that aids visibility of supply, simplifies invoicing, creates easy access to finance goes a long way in streamlining distribution and in bringing down the cost of procurement for industrial buyers.”
The partnership signifies a major milestone in Bizongo’s expansion and showcases the transformative power of technology in reshaping traditional industries. With India’s focus on strengthening its manufacturing sector, Bizongo is well-placed to drive efficient and sustainable aluminium sourcing across the nation.
