MogliLabs, which owns and operates B2B industrial goods marketplace Moglix, has raised $23 million (about Rs 164.57 crore) in a fresh round of funding, which was led by marquee venture capital firm Accel Partners US and existing investor International Finance Corp (IFC).
The latest round of funding comes about 15 months after the Singapore and Noida-based company, which also counts Accel India, Jungle Ventures, IFC and former WhatsApp senior executive Neeraj Arora among its list of backers, closed its $12 million Series B equity financing round in July last year.
“Today, the manufacturing sector is $300 billion in size, and has the potential to reach $1 trillion by 2025. However, the adoption of technology is less than 1% currently…We foresee immense potential and scope of innovation in the B2B commerce space,” Rahul Garg, founder and chief executive of Moglix said.
Moglix that competes primarily with SAIF Partners-backed IndustryBuying, along with offline distributors, which dominate a highly-fractured market, caters to clientele across industries, including, automotive, FMCG, mining, steel, chemicals and pharmaceuticals.
It caters to both large and SME players in the manufacturing industry, with annual turnover ranging between Rs 500 crore and Rs 10,000 crore.
A significant portion of the funds raised will be utilised by the company, which has about 475 employees on its rolls, to ramp up its supply chain network, further build its team and its technology product suite, according to Garg.
“We expect to have 18-25 distribution centres over the next 12-15 months, up from our current 10 hubs,”
The company was founded in 2015 by Garg, an IIT Kanpur and Indian School of Business, Hyderabad alum, after a five-year stint at Google that spanned across Singapore and Tokyo.
The company claims to have over 4,000 suppliers, 2,500 brands and 300,000-plus stock keeping units (SKUs) and is projecting a supplier base of 10,000 and 500,000-1 million SKUs over the next 12 months.