India’s fastest growing B2B commerce platform, Moglix, has entered the unicorn club with the latest $120 million funding at the valuation of over $1 billion. The latest round of funding takes the total funds raised by Moglix to $220 Million.
The Series E funding round was led by Falcon Edge Capital and Harvard Management Company (HMC). Moglix said that the round also saw participation from its existing investors, Tiger Global, Sequoia Capital India, and Venture Highway.
Tiger Global had previously participated in the Series D round in 2019.
“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,” Rahul Garg, Founder & CEO, Moglix, said in a statement.
Accel Partners, Jungle Ventures and Venture Highway have been the earliest investors in the company, which also attracted investment from Ratan Tata, Chairman Emeritus, Tata Sons in 2016.
Flipkart CEO Kalyan Krishnamurthy, JK Fenner’s managing director Vikrampati Singhania and ex-Google Shailesh Rao had also invested in the startup.
“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,” Garg said.
The company claims to be the country’s largest B2B commerce platform in the industrial and MRO procurement space. It is building an operating system for manufacturing that provides its customers with a full-stack service covering procurement, packaging, supply chain financing and highly integrated software.
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 Moglix platform.
Moglix has a supply chain network of over 16,000 suppliers, 35 warehouses and logistics infrastructure. “With close to 500,000+ SKUs, its marketplace, www.moglix.com is the largest e-commerce platform in the industrial goods category in India,” the company claimed, citing a first-mover advantage in the market.
“We studied and tracked Moglix for years, driven by our global experience in investing in online MRO platforms. Moglix’s distinctive customer value proposition and ROI are visible in its outstanding customer, and revenue retention numbers,” Navroz D. Udwadia, Co-Founder of Falcon Edge Capital, said in the statement.
India’s eB2B market is expected o reach $60 billion by 2025 at a compound annual rate (CAGR) of 80% from 2019, as per RedSeer.
“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. We believe Moglix is now well poised to scale, and we are thrilled to back the Company in the next phase of its growth,” Udwadia added.
The startup is currently helping solve the challenge of effective distribution and sharing of oxygen concentrators covering a million people in the country. It has supplied PPE, oxygen concentrators, oximeters, thermometers to essential goods and services companies to ensure their employees are protected.
“Globally, we have also been instrumental, in this and the last year, in streamlining the PPE supply chain and distribution across 20+ countries,” it said.