Bizongo Faces ₹124 Cr Fraud Complaint Over Invoice Financing Deal

B2B platform Bizongo is under scrutiny after TradeCred filed a complaint with Mumbai’s Economic Offences Wing (EOW), alleging a ₹124 crore fraud linked to its now-closed supply chain financing (SCF) business. What’s Alleged: • Between Aug 2024 and Apr 2025, Bizongo raised ₹256 crore by selling customer invoices on TradeCred. • Instead of routing customer payments to escrow accounts (as per agreement), the complaint claims Bizongo diverted the money to its own accounts. • Senior executives and investor reps from Accel, B Capital, Chiratae, and IFC are named, allegedly aware of repayment delays. Investor Involvement: • The complaint states that investors were actively involved in operations from July 2024. • Despite a repayment agreement of ₹1 crore/day from Aug, delays began in Nov. • Even after a ₹30 crore infusion in Mar 2025, the funds allegedly weren’t used to repay TradeCred. Bizongo’s Stand: • Denies wrongdoing; says repayments were made through a common escrow, reducing dues from ₹250 crore to ₹66 crore. • A settlement plan has been shared with TradeCred for the balance. Past Audit Flags: • Auditor BSR & Co. raised concerns in Jan 2025 about fake vendor-customer links and missing documents. • Bizongo had blamed this on a past internal fraud involving a former employee, uncovered in Sept 2024. Company Pivot: • Shut down SCF business in Sept 2024. • Focused on raw material procurement for SMEs, claiming profitability as of Q1 FY26. What’s Next: • TradeCred has asked EOW to file an FIR under criminal laws. • EOW has acknowledged the complaint, but no FIR has been registered yet. This may dent Bizongo’s credibility, stall future fundraising, and bring startup governance under the spotlight.