Global hedge fund and among prolific startup backers, Tiger Global, which has been on an investment spree in startups since around October last year after almost a virtual freeze of close to three years since 2016 funding slowdown has now backed Ratan Tata-funded Moglix -- B2B marketplace for industrial tools and equipments.
Tiger Global has backed over a dozen startups in last around nine months, mostly B2B or enterprise startups including CheckMate, Facilio, Fyle, Innovapptive, Clevertap, OKCredit, Open etc.
Moglix, which competes with the latest publicly-listed internet company IndiaMART, has raised $60 million in series D round of funding led by Tiger Global and participation from Sequoia India and Composite Capital, the company said in a statement. Apart from Ratan Tata, Moglix counts Accel Partners, Jungle Ventures, IFC, and Venture Highway.
India’s indirect purchase market is currently worth more than $50 billion and expected to hit $100-billion size by 2025. Moglix claims itself to be the “largest and fastest growing” B2B commerce company in this market.
Backing B2B or enterprise startups are “better scalable than B2C wherein you first acquire customers and then build a business model around it. The possibility of expanding it faster is not restricted to the local geography. Hence it offers a much wider market to exploit,” Founder and Managing Partner at Unicorn India Ventures Anil Joshi had told Financial Express Online.
The company will invest the capital in setting up industrial distribution centres across the country to “cover all over 25 major hubs for manufacturing by May 2020,” it said apart from investing in “tech-first strategies” in supply chain and procurement areas for “touchless and seamless indirect procurement.”
Moglix is also launching a “Moglix Innovation Hub” to spur innovation in for B2B commerce and supply chain and will focus on “advanced technology, SaaS platforms, fintech and logistics etc” in the procurement domain. The company has committed $5 million for this development.
“It is great to see how Moglix is on a major upsurge, growing at a rate of 300 per cent year on year,” said its Founder and CEO Rahul Garg, adding that the funds will help them optimise efficiencies in technology innovation, analytics, and building and owning a wide logistics infrastructure network.
Moglix is “rapidly transforming procurement services for India's B2B market” said Scott Shleifer, partner, Tiger Global Management.
Moglix had last year reportedly forayed into Eastern India and was ranked India’s fastest technology company in the top 50 big and small businesses last year by Deloitte for its 11, 836 per cent growth rate for the year followed by Razorpay and Cashify.