India's Moglix raises $250m at $2.6b valuation
Tiger Global Management and Alpha Wave Global have led a USD 250m Series F round for India’s Moglix. It more than doubles the industrial B2B start-up’s valuation in the past eight months to USD 2.6bn.
Hong Kong-based Ward Ferry joined the Series F as a new investor. It follows a USD 120m Series E led by Alpha Wave (then known as Falcon Edge Capital) and Harvard Management Company at a valuation of USD 1bn. Tiger Global also supported that round, along with Sequoia Capital India and Venture Highway.
Moglix offers an industrial goods and services procurement marketplace primarily serving the manufacturing sector. It works with manufacturers and infrastructure companies to modernize their procurement and distribution systems. There are also capacities in packaging and supply chain financing. The financing service has recently crossed the USD 100m mark in disbursals.
The company services more than 500,000 small to medium-sized enterprises (SMEs) and 1,000 large manufacturers across India, Singapore, the UK, and the United Arab Emirates.
Its network currently encompasses 16,000 suppliers and 40 warehouses. The client base includes Hero MotoCorp, Tata Steel, Air India, and Unilver.
Total funding since the company’s inception in 2015 now stands at USD 470m. Tiger Global has been an investor since 2019, when it provided a USD 60m Series D alongside Sequoia India and Composite Capital.
Previous backers also include InnoVen Capital, Rocketship.vc, International Finance Corporation, and Ratan Tata, chairman emeritus of Tata Sons, with Accel Partners, Jungle Ventures, and SeedPlus Singapore among the earliest. Some seed-stage investors have seen 80x returns, according to a statement.
The fresh capital will be used to build out technology and services. This will include a greater focus on supply chain financing and the acquisition of partners for global expansion. Rahul Garg, CEO and founder of Moglix, said the company aims to create a manufacturing ecosystem worth USD 1trn in India alone.
Moglix brands itself among the largest and fastest-growing companies of its kind in India as well as the country’s first B2B services unicorn. It has significant competition, however, from several PE-backed counterparts, such as OfBusiness, Infra.Market, and Zetwerk.
Tiger Global and Alpha Wave are also investors in OfBusiness, having backed a USD 325m Series G in December at a valuation of USD 5bn. Tiger Global and Accel are also investors in Infra.Market, while Accel is an investor in Zetwerk.
The PE thesis behind Indian B2B and SME supply chain marketplaces is to consolidate and professionalise a fragmented sector with technology upgrades while helping leading players expand overseas. The leader in this category is arguably Udaan, which has raised about USD 1.1bn since 2018 with a focus on digitising micro-businesses sector and e-commerce logistics.
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