B2B e-commerce startup, Moglix has announced closing of Series B round of funding at $12 million. The round saw participation from International Finance Corporation (IFC), a member of the World Bank Group and Rocketship.vc, along with Moglix’s existing investors Accel Partners, Jungle Ventures, Shailesh Rao, ex-VP Twitter and Google and Venture Highway advised by Neeraj Arora of Whatsapp.
Moglix is also backed by Tata Sons’ Chairman Emeritus Ratan Tata since its inception, as his maiden investment in B2B e-commerce domain.
The company plans to use funds to support the strong demand for Moglix’s robust technology solution in supply chain and manufacturing domain, infrastructure growth and geographical expansion plans.
Manufacturing sector in India is the least digitised industry compared to other sectors in India. Today, barely 2-3% of manufacturing units are using digital platforms in their supply chain management. With this investment, Moglix is looking to propel digital revolution of India’s manufacturing sector with its integrated digital supply chain solution and aiming to launch in 3 more cities in India apart from its current presence in Delhi NCR, Pune and Chennai.
Commenting on the development, Pravan Malhotra, Head Asia Internet Investments, IFC, said, “Moglix’s client satisfaction, innovation, strength of management and expansion are redefining the B2B e-commerce market. We are excited to partner with the company as they embark on the path of rapid growth and success.”
Founded in 2015 by Rahul Garg who was previously the Head of Advertising Exchange at Google Asia, Moglix is led by a group of young and motivated individuals passionate about shaping the manufacturing/ B2B commerce landscape in India.
Moglix that is specializes in B2B procurement of industrial products such as MRO, Fasteners, Electrical, Hardware, Pneumatics, Safety items and more, aims to be the largest technology platform where demand and supply can be matched through price discovery and product availability.
Moglix’s solutions cater to more than one lakh small and medium-sized enterprises (SMEs), and over 200+ large manufacturing houses in India. Moglix currently has more than two lakh stock keeping units (SKUs) listed on its platform and serves some of the largest auto, electrical and public sector undertakings (PSUs) in the country including Lumax, IndiaForge, Havells etc.
“The raise will accelerate our infrastructure build-up to better serve our customers, and enhance our product offerings as the manufacturing and supply chain industry heralds towards digitization.According to a recent industry report, the global B2B e-commerce market is estimated to reach $7 trillion by 2020, as it’s twice as big as B2C market. We are making strides to harness the potential of the market in India and other Asian countries,” said Rahul Garg, Founder & CEO, Moglix.
The company specializes in digital procurement of industrial MRO items and aims to utilise the funds to expand geographically across multiple industrial hubs in India. With the recent reforms of GST implementation and move towards a cashless economy, Moglix is well-poised to cater to more customers in the days to come.
Recently, Moglix also launched GreenGST, a unique solution for the manufacturing sector that will make the entire customer ecosystem GST compliant and future-ready, marking another milestone towards its commitment to the space.
Moglix had previously raised Seed and Series A funding of $6 million from venture capital firms like Accel Partners, Jungle Ventures, SeedPlus and Venture Highway. With this current round, the total amount of fund raised by Moglix stands at $18 million. The announcement is significant since the investment has been raised at a time when there is heightened uncertainty and deteriorating business confidence overshadowing the startup ecosystem.