With $120 Mn Funding, Moglix Joins Indian Unicorn Club
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Moglix has become the first industrial B2B commerce platform, in the manufacturing space, to become a unicorn. The company on Monday announced to have been valued at $1 billion in its latest $120 million Series E funding round. The latest investment was led by Falcon Edge Capital and Harvard Management Company (HMC). This round of funding also saw participation from its existing investors, Tiger Global, Sequoia Capital India, and Venture Highway.
Moglix is India’s largest and fastest-growing B2B commerce platform in the industrial and MRO procurement space with a clear first-mover advantage. The Company is building an operating system for manufacturing that provides its customers a full-stack service covering procurement, packaging, supply chain financing, and highly integrated software.
“We started six years ago with a firm belief in the untapped potential of the Indian manufacturing sector. We had the trust of stalwarts like Ratan Tata, and a mission to enable the creation of a $1 trillion manufacturing economy in India. Today, as we enter the next stage of our evolution, we feel this financing milestone is a testimony to our journey of innovation and disruption. In these unprecedented times, we have pledged our support and disruptive thinking to help solve the challenge of effective distribution and sharing of oxygen concentrators covering over one million people in the country. Globally, we have also been instrumental, in this and the last year, in streamlining the PPE supply chain and distribution across twenty countries. We are glad that Falcon Edge Capital and Harvard Management Company (HMC) have partnered with us in this journey. Falcon Edge, with its deep roots in the Middle East and Europe and an understanding of public companies, will guide us through the next phase of our journey,” shared Rahul Garg, founder, and chief executive officer, Moglix.
Founded in 2015, by IIT Kanpur and ISB alumnus Rahul Garg, Moglix provides solutions to more than 500,000 SMEs and 3,000 manufacturing plants across India, Singapore, the UK, and the UAE. Several manufacturing majors such as Hero MotoCorp, Vedanta, Tata Steel, Unilever, and PSUs such as Air India and NTPC procure indirect material through the platform.
“We have studied and tracked Moglix for years, driven by our global experience in investing in online MRO platforms. We are strong believers in Rahul, his first-mover advantage, his full-stack solution for under-serviced customers, and his ability to drive robust unit economics. Moglix’s distinctive customer value proposition and ROI are visible in its outstanding customer and revenue retention numbers. We believe Moglix is now well poised to scale and we are thrilled to back the Company in the next phase of its growth,” stated Navroz D. Udwadia, co-founder, Falcon Edge Capital.
Moglix has a supply chain network of over 16,000 suppliers, more than 35 warehouses, and logistics infrastructure. With close to 500,000 SKUs, its marketplace is the largest e-commerce platform in the industrial goods category in India.
Tiger Global, which participated in the Series D round in 2019, has also invested in the latest round.
"We remain excited about the team, market opportunity, and continued innovation. Moglix is a market leader and we expect they will grow rapidly with high returns on capital," added Scott Shleifer, partner, Tiger Global Management.
Global FMCG giant Unilever uses the platform for ~$30 billion of material spend annually in over 70 countries. Moglix recently launched Credlix, a supply chain financing platform for suppliers and manufacturers and expects to power INR 1000 crore of financing in the coming year.
This latest round of funding takes the total funds raised by Moglix to $220 Million. Accel Partners, Jungle Ventures, and Venture Highway have been the earliest investors in the company. Moglix has in subsequent rounds received investments from leading global venture capital funds such as Tiger Global, Sequoia Capital India, International Finance Corporation, and Composite Capital among others. Ratan Tata, Chairman emeritus, Tata Sons had invested in the start-up in 2016. Leaders from the start-up and manufacturing communities such as Kalyan Krishnamurthy, Vikrampati Singhania, JK Fenner, and Shailesh Rao, have been investors in Moglix.