B2B e-commerce company Moglix, which specialises in procurement of industrial products, today announced that it has raised Rs 28 crore in Series A round of funding led by Accel Partners with participation from Jungle Ventures and SeedPlus. Founded in August 2015, Moglix is focused on technologically disrupting the B2B industrial products space for suppliers and buyers across the globe. Moglix has raised Pre-Series A funding from Accel Partners and Jungle Ventures in October 2015 and an undisclosed financial investment in the company by Ratan Tata in February 2016.
Moglix caters to over 20,000+ SME buyers and 100+ large manufacturing houses through its platform. The funds will be deployed to expand operational footprint across major industrial hubs, increase the SME customer base by 5 times to more than 100 thousand and large manufacturing buyers to more than 1000 in the next 18 months. Moglix recently expanded its operations in West India with the launch of its Pune office to cater to manufacturing companies in Gujarat and Maharashtra. The company plans to expand its footprint to South and East India in the coming one year and is targeting more than $100 million revenue in the next three years.
The company has also added Anurag Srivastava, Founding & Managing Partner, Jungle Ventures to its advisory board after this round. Srivastava brings in extensive experience in the Asia-Pacific and India region working with startups in technology as well as manufacturing sector. In his role as advisor, Anurag will work with Moglix on product management and devising technology strategy for large manufacturing houses in the automotive industry.
Commenting on the funding, Rahul Garg, CEO & Founder, Moglix, said, “We are inspired by the confidence shown in us by Accel Partners, Jungle Ventures and SeedPlus. We see this as a testimony and validation of our leadership in the B2B procurement space and are excited about the disruption in the space in the coming years. We are thrilled to have Anurag on board as an advisor. Given his deep experience working with startups in the technology and manufacturing sector, his inputs will make a huge difference, as we scale Moglix rapidly.”
Moglix currently specialises in B2B procurement of industrial products such as MRO, fasteners and industrial electricals and is playing an important role in facilitating online convenience and enabling supply chain efficiencies in business purchasing. The company is witnessing rapid growth and has partnered with more than 1500 manufacturers and distributors across these categories in India, China and Taiwan. Moglix currently has more than 2 Lakh SKUs listed on the platform and serves some of the largest auto, electrical and PSUs in the country such as Lumax, IndiaForge and Indian Oil. Recently, Moglix became part of the SAP startup studio program and is working closely with SAP on driving digital acceleration within manufacturing companies.
Garg added, “Most of the manufacturing industries in India have remained low on technology adoption whether it is ERP, procurement, planning and inventory management. The Make in India program when combined with the digital initiatives in the country have great potential to play a transformative role in India’s manufacturing sector. We believe that technology can be a strong factor in propelling the efficiency and scale for both procurement and sales of the organisations. We are working with many of these companies to fast forward them to the digital age where technology can enable them to do tasks 3-5 times faster.”
Speaking on the investment, Subrata Mitra, Partner, Accel Partners, said, “Currently medium and large enterprises procure from 100s to 1000s of vendors, and the entire process is run on an ad-hoc basis. Moglix’s ability to induct technology into such a process is innovative and will lead to significant efficiencies. It’s also a large scale issue, and if solved well can create a formidable business.”
Srivastava said, “Moglix is one of the largest platforms for industrial products in the country. Since its inception, Moglix has had a healthy, organic growth that is both sustainable and aggressive at the same time. I am honoured to join the board of a company. We believe Moglix will continue to lead the space in the future too and are excited with the growth path that the company is on.”