4.99 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	4.99

* These investment figures are indicative

A. Project Impact A.1. Stakeholder Impact A.1.1. Increase in number of SME suppliers reached: Bizongo has more than 2500 registered SMEs, allowing smaller offline players to integrate better into the market. A.1.2. Increased capacity utilization of SME suppliers by providing access to larger customers: Many SMEs in this sector lack professional expertise to market and distribute products, leading to low (less than 50%) capacity utilization. Bizongo is able to provide incremental demand and process knowhow which has led some suppliers to increase capacity utilization, significantly improving efficiency. A.1.3. Improved financial sustainability of the SME suppliers through shorter working capital cycles: Suppliers are better able to manage their business financially due to shorter working capital cycles - since they no longer need to approach buyers individually - which leads to lower working capital needs and better inventory and time management. Customer acquisition costs are also decreased. A.2. Economic Impact A.2.1. Improved Employment: Bizongo currently gives jobs to ~110 employees directly (of which women are ~30%). Increased order volumes for suppliers could also lead to more employment within the SME packaging sector. B. Market Impact B.1. Improve efficiency and innovation by aggregating a highly fragmented industry: Bizongo contributes to market creation by consolidating and tech-enabling the packaging sector, which is currently fragmented and largely unorganized, with more than 30k registered packaging companies, out of which 85% are MSMEs. The platform supports innovation and efficiency by improving quality, developing new designs, standardizing existing designs and improving the efficiency of suppliers to make them more competitive. B.2. Promoting the digital economy by increasing SME integration into ecommerce: SME B2B ecommerce in India is still underdeveloped. Bringing SMEs into the digital economy improves market linkages, strengthens the value chain and promotes financial inclusion (as digital invoices can prove credit worthiness to banks). This project also signals IFC's confidence in the financial viability of the broader B2B eCommerce space.

1. Financial Additionality 1.1. Early stage equity finance: IFC can play a counter-cyclical role in the ongoing tough fund raising environment in India for early-stage companies, especially for companies looking for Series B stage funding. 2. Non-Financial Additionality 2.1. Knowledge sharing: IFC will share Indian and global sector learnings and expertise from existing investments in the B2B eCommerce space (Moglix, Power2SME) and other related sectors. 2.2. Best practices: IFC will support the company in implementing best practices in corporate governance and environmental and social management through the appointment of a Director to the Board. Through adoption of the IFC Performance Standards, the Company will be able to further improve its operating standards 2.3. Assisting with key industry relationships: The Company will benefit from access to IFC's deep relationships in the Indian VC market when it pursues future funding rounds.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

Key environmental and social (E&S) risks and issues associated with the project include company’s capacity and systems to manage its social, environmental, health and safety aspects of its operations in compliance with legal requirements as well as IFC Performance Standards and World Bank Group (WBG) EHS guidelines; assurance of fair, safe and healthy working conditions for its workforce (both employees and third party
workers); and ensuring compliance with IFC PSs requirements in the supply chain.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.