Bidzaar

Bidzaar is a commercial electronic marketplace, B2B SaaS to automate the procurement of private companies.

The creators of Bidzaar call the service an electronic trading platform of a new type, created on the principle of a social network of customers and suppliers of goods and services. Artificial intelligence-based service algorithms independently select the most suitable suppliers by keywords and behavioral patterns. Bidzaar checks them against more than 30 databases and analyzes 30 financial indicators. This will optimize the selection of suppliers and reduce procurement costs by 10-15%, the developers say.

Performance indicators

2023:236% revenue growth

As TAdviser found out, in 2023, the cloud service for B2B purchases Bidzaar (Bidzaar LLC) increased revenue by 236%, to 327.6 million rubles. According to the database of legal entities Kontur.Fokus, "the company operating in the market since 2019, after two previous unprofitable years, showed a net profit - it amounted to 60.6 million rubles.

The key driver of revenue growth is the attraction of new customers transferring their purchases to digital format (70%), or switching from other older solutions (30%), Bidzaar founder Andrei Chernogorov told TAdviser. Demand from customers is followed by suppliers.

In 2023, the number of customers increased from 175 to 468. The number of suppliers has changed over the year from 69 thousand to 101 thousand. At the same time, the service is not limited to its own supplier base. Its developers taught artificial intelligence to use the base of the 1C: Business Network service. Trading platform. He selects suppliers and recommends them for trading based on the fact that their assortment fits the customer's request^[1].

source = Bidzaar site screenshot

Procurement turnover (GMV) increased from 62 to 135 billion rubles, not counting tenders without a declared volume (termination of framework agreements). It is estimated that the real trading turnover is closer to 200 billion rubles, says Andrei Chernogorov.

One of the significant growth factors was integration projects with customers based on 1C ERP, to which the middle and large segment of enterprises is massively switching, he added.

As a result of integration, 1C users can create purchase requisitions and attract counterparties from the Bidzaar supplier base, determine the winner and consolidate the order from 1C software products.

According to the Bidzaar website, among the companies that are already purchasing on the site are, OzonChildren's world Beeline Tele2 "Rigla" Sokolov",,,,,,,,,,,,, and "Baltic Coast" "Hemotest" Baltika Kari many Sovcombank "Dodo Pizza" others.

From the point of view of the functionality, Bidzaar is a replacement for the German SAP Ariba solution that has officially left the Russian market. The service is offered in the form of two modules: finding suppliers for bidding and maintaining a register. A subscription to each of them costs 36 thousand rubles a year. Some of the partners order only the bidding module, but there are more and more of those who install both modules.

At the same time, the main monetization of the service is a commission from the supplier upon successful completion of the auction. It ranges from 10 to 50 thousand rubles and depends on the purchase amount. The maximum commission of 50 thousand rubles applies only to large purchases with a total value of 50-100 million rubles. On average, the commission is 0.2% of the delivery amount.

The lower mark from which suppliers have interest in trading is from 0.5-1 million rubles. The company says that Bidzaar has quite a lot of purchases worth tens of millions of rubles. Some companies conduct procedures for 1-1.5 billion rubles through the service. For example, building a warehouse.

History

2023: 1C increases stake in Bidzaar

According to the Unified State Register of Legal Entities, in March 2023, the share of 1C LLC in Bidzaar legal entity - Bidzaar LLC - increased from 28.05% to 49.55%. At the same time, Olga Zarubina left the Bidzaar owners, whose share passed to 1C. The share of Bidzaar founder, Cognitive Technologies CEO Andrei Chernogorov, has not changed as a result of the transaction and is 50.45%.

2022: Acquisition of 28% of shares by 1C

1C On November 17, 2022, the company "" announced TAdviser the closure of the transaction to acquire a 28% stake in Bidzaar (Bidzaar LLC). The value of the transaction was not disclosed. The controlling owner and operations manager of Bidzaar remains its founder, Andrey Chernogorov whose ownership share is 50.45%.

1C bought a stake in the Bidzaar cloud service, an analogue of SAP Ariba
Photo: yandex.ru

As the representatives of the companies noted, the strategic goal of the partnership "1C" and Bidzaar is to increase the effectiveness of the programs "1C: Enterprise" in terms of interaction between users and their external suppliers.

According to Bidzaar founder Andrei Chernogorov, the company has been growing at a fivefold pace for three years. It is expected that after entering the ecosystem with "1C" its growth rate will double.

1C is a strong partner for any B2B company in Russia. We see that other products in the 1C ecosystem have received a powerful and positive impetus from entering such a partnership, while maintaining their unique advantages. I am talking about companies such as amoCRM, Bitrix, Smartway, My Warehouse - these are all the leaders of the Russian IT market in their segments. We share the principles of 1C, namely, we strive to benefit our clients' business by increasing the efficiency of their expenses, "added Andrey Chernogorov.

Bidzaar is developing a cloud service of the same name for planning purchases, search, qualification and holding tenders among counterparties - legal entities. According to the developers, from the point of view of functionality, Bidzaar is a full-fledged replacement for the solution of the German company SAP Ariba that has officially left the Russian market.

"The dynamically developing Bidzaar site was able to quickly gain a good reputation among Russian commercial companies. Thanks to the transaction, users of 1C products will have an even better purchase management function. Bidzaar's deep integration into the 1C ecosystem is planned to be carried out in the first quarter of 2023, "said Boris Nuraliev, director of 1C.

At the time of the transaction, Bidzaar's clients are 315 corporate clients with a total turnover of 6.2 trillion rubles, including the 25 largest private companies from the Forbes-200 rating. The annual turnover of GMV purchases at the site in 2022 (run rate) is 65 billion rubles. The number of registered suppliers is 65 thousand.

2021: Raising $2 million in investments

On June 21, 2021, it became known that Bidzaar had attracted $2 million in investments. The founder of Sber Eapteka Anton Buzdalin has invested in the startup. The founder of Bidzaar Andrei Chernogorov wrote about this on his Facebook page.

According to Chernogorov, over 1.5 years, 70 companies from the Forbes 200 list have become Bidzaar's clients, including Baltika, Alfa Bank, L'Etoile, Riv Ghosh, Rigla, Russian Standard, DoDo Pizza, Invitro and Kari.

Russian business procurement automation service Bidzaar raised $2 million

The founder of Bidzaar also announced plans to release a new product by the end of 2021, "to make several interesting experiments, who to buy and show the" golf club "in terms of income in the Russian Federation. In addition, the company is going to hold another round of funding.

It is noted that until 2021, the Bidzaar site worked according to the free to run model, and monetization began only in 2021 by charging a commission for winning the tender, or a subscription for suppliers and customers.

By June 21, 2021, three tariffs are provided for work in the Bidzaar system: basic (free), professional (15 thousand rubles per year) and Enterprise (19 thousand rubles).^[2][3]

Old Bidzaar logo

2019: Service Creation

Bidzaar, a cloud-based procurement automation service, launched in 2019. It was created by the founder of the Russian "Association of Procurement Directors" and the general director of Cognitive Technologies Andrei Chernogorov.

Notes