Our investment
Description of the investment.
Description of the investment.
We first invested in the business in 2020 alongside Chiratae Ventures to help scale Bizongo’s business across an additional 1,000 small businesses, sustaining at least 20-30,000 formal jobs for low-income workers in manufacturing SMEs in India.
With most suppliers pointing to the lack of good alternatives to Bizongo in the market, we can play an important role in backing an innovative model that is driving efficiencies across the sector while contributing to MSME growth.
We can further play a stewardship role around social and environmental practices, setting standards for the industry and enabling Bizongo to reduce execution, reputational, and negative impact risks as the business expands.
We made a further investment in the business in 2021 and 2023.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Sustain income generating opportunities (SDG 8.5). |
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How?
| How? |
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Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Suppliers, their employees |
Pan-India: 24 Indian states out of 36 (including Union territories) |
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How much?
| Scale | Depth/Duration |
|---|---|
|
Additional 1,000 manufacturing partners across India, indirectly sustaining an additional 20,000 to 30,000 workers. |
50 per cent of surveyed suppliers report improved business outlook due to Bizongo and report paying their workers more than similar businesses. A majority of the unskilled workforce is made up of contractual labour, who work at these firms for 2-3 years on average. Employees in managerial or administrative positions tend to stay on for longer, with some reporting over 10 years and some reporting as many as 20 years of employment |
Contribution/additionality
| Contribution/additionality |
|---|
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Grid score
| Grid Score
To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score. |
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This investment is made under an approved Catalyst Strategy, and therefore does not require a grid score. |
Risk
Execution Risk
Unexpected Impact Risk
Alignment Risk
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Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
The E&S risk categorisation is medium-low (B). As part of the 2023 fundraise, BII will support Bizongo to implement a value-add programme to improve E&S practices in its vendor base.
Environmental and social risk
Medium-Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- January 2024
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2024
- Project number
:
An identifier number shared by investments in the same project.
- D5306
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- India
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Manufacturing
- Investment type :
- Equity
- Start date :
- September 2023
- Amount :
- $2.39m
- Currency of investment :
- INR
- Domicile
:
The company or investment fund’s place of incorporation.
- India
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
Related investments made by BII into this company:
| Investment name | Commitment | Region | Sector | Start date | Status |
|---|---|---|---|---|---|
| Investment 01 | $3m | South Asia | Manufacturing | December 2020 | Active |
| Investment 02 | $17.38m | South AsiaSouth Asia | Manufacturing | December 2021 | Active |
