Bizongo refutes allegations of misappropriation in TradeCred complaint
Bizongo said all repayments were processed with internal approvals and routed through a common escrow account, as instructed by TradeCred.
B2B ecommerce platform Bizongo has denied allegations of misappropriation and financial misconduct, following a criminal complaint filed by invoice marketplace TradeCred with Mumbai’s Economic Offences Wing (EOW).
The company said all repayments were processed with internal approvals and routed through a common escrow account, as instructed by TradeCred, refuting claims that it diverted funds from customer invoices into its own accounts.
The complaint, filed on June 26, names senior Bizongo executives and investor representatives from Accel, B Capital, Chiratae Ventures, and IFC, and alleges irregularities in handling over Rs 124 crore linked to the company’s now-discontinued supply chain financing (SCF) business, Moneycontrol reported.
According to the report, TradeCred claimed Bizongo collected payments from customers directly but failed to credit the amounts to designated escrow accounts. The complaint also alleged that repayments slowed despite fresh funding and that investors were aware of the situation.
Bizongo, however, maintains that the repayments were consistent and carried out as per agreed terms.
“Over the past year, under the new leadership, Bizongo has repaid over Rs 184 crore to TradeCred, reducing its principal obligation from over Rs 250 crore to Rs 66 crore,” the company said. “All repayments were processed with internal approvals and transferred into a common escrow account, as instructed by TradeCred.”
It further stated that a formal settlement plan has been submitted for the remaining dues and that it is awaiting a response from TradeCred. Bizongo emphasised that the SCF business has since been shut down and that the issues raised relate to legacy operations. “It is important to note that the SCF business has been completely exited under the current new leadership,” the company said.
Bizongo also noted a broader turnaround in its operations, claiming a significant deleveraging and a profitable pivot. “Since then, Bizongo has reduced its net debt (after security) from approximately Rs 900 crore to under Rs 100 crore, a 90% reduction. The company has successfully pivoted to a raw materials supply platform, which turned profitable as of the April–June 2025 quarter, with a monthly GMV of Rs 130 crore.”
It reiterated its commitment to compliance and ethical governance. “Bizongo continues to operate in full compliance with regulatory norms and remains committed to transparency, ethical conduct, and the trust of its stakeholders. Attempts to conflate a resolved financial restructuring with misconduct are misleading and do not reflect the company’s current financial position or governance standards,” the company said in its official statement.
The EOW has acknowledged receipt of the complaint, Moneycontrol reported, though no First Information Report (FIR) has been filed as of publishing.
Edited by Kanishk Singh