India: Moglix raises $120m, becomes latest startup to join unicorn club

Photo: Pixabay

B2B e-commerce platform for manufacturing goods, Moglix, has raised $120 million as a part of its latest series E funding round, led by Falcon Edge Capital and Harvard Management Company (HMC), taking the overall valuation of the company to $1 billion.

Existing investors Tiger Global, Sequoia Capital India and Venture Highway also participated as part of this round.

This is almost a three-time jump in valuation for the company which had last raised $60 million in July 2019, at a valuation of $200 million-$300 million.

With the current equity infusion, the total funds raised till date by Moglix stands at $220 million.

The six year old startup provides manufacturers with industrial goods through its e-commerce platform, and 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 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,” said Rahul Garg, founder and chief executive officer, Moglix.

At present, Moglix provides solutions to more than 500,000 small and medium enterprises and 3,000 manufacturing plants across India, Singapore, the UK and the UAE.

The company also works with Hero MotoCorp, Vedanta, Tata Steel, Unilever and public service undertakings such as Air India and NTPC to help them procure indirect material through the Moglix platform.

The company currently has a supply chain network of more than 16,000 suppliers, across 35 warehouses and lists more than 500,000 stock-keeping units on its e-commerce marketplace.

“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,” said Navroz D. Udwadia, co-founder of Falcon Edge Capital.

The company had last raised close to $60 million, as a part of its Series D fundraise,

Moglix counts Accel Partners, Jungle Ventures and Venture Highway as its earliest investors and has raised funds from the likes of International Finance Corporation, Composite Capital through subsequent funding rounds.

It is also backed by Ratan Tata, chairman emeritus, Tata Sons; Kalyan Krishnamurthy, chief executive officer, Flipkart, and former Google executive, Shailesh Rao.

“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,” said Scott Shleifer, partner, Tiger Global Management, which first invested in the startup back in 2019.

Looking at the deadly second wave of the covid-19 pandemic in the country, Moglix has pledged to share oxygen concentrators for more than a 1 million people in the country.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.