Extensive SWOT Analysis of Bijnis – Taking Factories To The World

Quick Stats on Bijnis

Founder	Chaitanya Rathi, Shubham Agarwal, Siddharth Rastogi, Siddharth Vij
Year Founded	2015
Origin	India
No. of Employees	2,700+
Company Type	Public
Market Cap	N/A
Annual Revenue	Rs 2.3 Crore (2019)
Net Income/ Profit	N/A

 

Services Offered by Bijnis

Various services offered by the Bijnis are:

• Share it with your network of buyers and let it do the talking for your factory.
• Take control of your distribution without worrying about payment, logistics & credit.
• Connecting you to financial institutions & hassle-free credit assistance to improve and scale up your factory.
• Easy-to-use digital tools to help manage Inventory, Cashflow, Production, and Wages & optimise the operational effectiveness of your factory.
• A seamless channel to help you export directly to buyers without any process hassle and take your factories to the world.

Competitors of Bijnis

Various competitors of Bijnis are

• Jiga.
• Batchforce.
• Applied AI
• KREATIZE 

As now we have a better understanding of Bijnis, let’s look into the SWOT Analysis of Bijnis.

SWOT Analysis of Bijnis

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows Bijnis to compare its business and performance with competitors and the industry as a whole.

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So let us go ahead and first have a glance at the strengths of Bijnis from the SWOT analysis of Bijnis.

Strengths of Bijnis

As one of the leading companies in the industry, Bijnis. It has numerous strengths that make it stand out in the market. These strengths not only help protect your market share in existing markets but also help you penetrate new markets.

• Business Model: The business model of Bijnis is successful shortly because in India the textile industry and cloth manufacturing factories are in huge numbers and these manufacturers are looking for direct access to retailers that enable them to build their distribution channels without being dependent on agents and wholesalers to generate demand.
• Userfriendly Application: The digital application created by Bijnis is userfriendly that can easily be usable by manufacturers at factories. It is a 3-step process through which manufacturers can easily connect their factories with direct buyers. 
• A Surge in Operating Revenue: The 7-year-old company Bijnis has seen a 6.2x increase in its operating revenue which goes from Rs 37 lakhs in FY18 to Rs 2.3 crore in FY19 through logistic fess and the rest through commission on sales on the platform.
• Getting Fundings: Bijnis’s mission to raise a $30 million fund for expanding the base of manufacturers has got successful where startup founders including Zomato co-founder Deepinder Goyal, Ofbusiness founder Asish Mohapatra, and other top executives have shown interest in investing in the business.
• Positive Reviews: Bijnis is getting positive reviews and feedback from its customers where customers i.e. factory manufacturers are feeling happy and blessed to see growth and a change in what it was operating previously.

Weaknesses of Bijnis

Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.

• Low Investment in New Technologies: Given the scale of the expansion and the multiple geographic regions in which the company will expand, Bijnis’s overall integrating processes require more money to be invested in technology. Current investments in technology are not aligned with the company’s vision. 
• Financial Planning is Not Being Performed Properly and Efficiently: The liquid asset ratio and liquidity ratio indicate that a company can use its cash more efficiently than it currently is. 
• Expenses & Losses: Although the company has seen a 6.2x growth in revenue from the operation at the same time the company’s total expenses have seen an 8x increase from Rs 1.15 crore in FY18 to Rs 9 crore in FY19 and an 8.5x increase in total loss from Rs 88.5 lakhs in FY18 to Rs 6.7 crore in FY19.
• Highly Reliant on Fundings: The business is getting highly reliant on generating funding from investors and this can cause the company to put its legs in the deep hole of huge debts and equities if the business fails to achieve what it’s trying to achieve.
• High Competition: The daily stock is high compared to its similar competitors, so the company has to raise more capital to invest in the channel. This could affect the long-term growth of Bijnis.

Opportunities for Bijnis

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

• New Customers Through Online Channels: The company has invested huge amounts of money in its online platform over the past few years. This investment opened up a new sales channel for Bijnis. Over the next few years, companies will be able to seize this opportunity by better understanding their customers and meeting their needs through big data analytics.
• Technological Advancements: Technology provides various benefits in a variety of fields. Costs can be saved by self-operating. Technology allows for much better data collection on customers and improves marketing efforts.
• Transport Industry: The transport industry has been prosperous in recent years and has powerful growth potential in the future. The company can see a reduction in the cost of transportation and logistics.
• Economic Recovery: Economic recovery and rising consumer spending after years of recession and slow industrial growth are opportunities for Bijnis and its customers i.e. factories to attract new customers and increase market share using online platforms.

Threats to Bijnis

Threats are environmental factors that can harm a company’s development. Here are some of Bijnis’s threats:

• New Entrants: A mow down of new players have entered the market and are gaining market share taking up the market share of existing companies. Bijnis faces a threat because these new entrants may steal its customers.
• Competitor Technical Advancements: New technological progress by a few competitors within the sector constitute a threat to Bijnis since customers who are drawn to this new technology may switch to competitors, reducing Bijnis overall market share.
• Agents & Brokers: The business of agents which were previously used to deal with the factories owners has got affected by Bijnis interruption. These agents and brokers can stand to take revenge by affecting the image of Bijnis in the market through fake rumours and news.

This ends our extensive SWOT analysis of Bijnis. Let us conclude our learning below.