How Moglix started by Ex-Googler is trying to mark its position in B2B Industrial tools sourcing industry?
About Moglix
Moglix is revolutionizing the e-commerce sphere across Asia with its superior online technology for the B2B sector. The leadership team derives its vast e-commerce, the internet and B2B expertise from the large and successful internet and trading companies like Google, Amazon, Snapdeal and Olam.
Moglix currently specializes in B2B procurement, maintenance, repair and overhaul of industrial products such as fasteners and industrial electricals.
Moglix’s end-to-end procurement marketplace is being built to provide product discovery, price negotiation, logistics and payment/escrow capabilities as it partners with manufacturers across India, China, Taiwan and other Asian countries.
Why we chose Moglix as Startup of the Week?
- Moglix is a marketplace for hand tools, power tools, cutting tools, and tapes and adhesives, among other products.
- Genuine industrial goods and products from top global and Indian brands are available for the customers across India.
- All the products are 100% genuine.
- The company has 200 Indian manufacturer brands on board including Havells, Larsen and Toubro, C&S Electric, Anchor and Bajaj Electricals.
- It is focused on bringing technology and manufacturing together to drive transparency, efficiency and scale for manufacturing companies.
- Moglix is enabling the use of technology for procurement, sales and marketing, supply network optimization in both domestic and global markets.
- Moglix is playing a role in facilitating online convenience and enabling supply chain efficiencies in business purchasing.
- Moglix currently consists of a team of 60 and it aims to expand to 100 in the next few months.
- The startup has served customers across 1000 cities and towns, with healthy traction and interest coming from both metro cities and Tier 2 and 3 cities.
- Currently available only through a website, Moglix is in the process of developing a mobile app solution.
- Around 11,525 Facebook fan following in a short span of time.
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Idea behind Moglix
Founded in August 2015 by Rahul Garg, a former Google employee, Moglix is focused on technologically disrupting the B2B Industrial products space for suppliers and buyers across the globe.
Fonder Rahul Garg said,”My father being a senior executive in an industrial switchgear making company, I grew up in an environment close to manufacturing equipment.”
Moglix has tied up with wholesale dealers in markets such as Delhi, Faridabad, and Gujarat besides partnering with Chinese and Taiwanese suppliers. The company operates in a just in time model and procures when it receives an order and has about 50 employees. Moglix aims to provide product discovery, price negotiation, and logistics.
Funding
Moglix has raised an undisclosed financial investment in the company by renowned industrialist, Ratan Tata. Moglix recently raised Pre-Series A funding from Accel Partners and Jungle Ventures. The funds are being used to enhance the technology platform, build a deep supplier base as well as increase marketing spends across Asia.
The Growth
The startup focuses on the $1 trillion+ worth business and industrial supplies market. These include electricals, lighting, hardware and tools broadly referred as engineering goods. Since its soft launch on 15 August, the startup has brought 200+ brands on board. These include Havells, Larsen and Toubro, C&S Electric, Anchor, Bajaj, Unbrako, Caparo, Ambika and Taparia.
It delivers to over 10,000 pin codes serviceable across India. The startup has partnered with Delhivery and Blue Dart to fulfill its delivery orders.
The industrial products market from Asia is growing at a rapid pace. Engineering goods contribute 24% of the Indian exports worth $300 billion+.
As the Government is driving manufacturing growth in India through the Make in India and Digital India campaigns, Moglix aims to steer itself to build on those initiatives. Hence, this market has also been a strong focus area for Make in India initiatives. A large part of this trade remains offline and happens via traditional B2B channels while the buyers are increasingly moving online.
“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 need to attract young entrepreneurs to commit to the “Make in India” initiative for it to succeed,” said Rahul Garg, founder of Moglix.
Future Plans
Moglix has a client base of 100+ companies in the manufacturing sector. These companies typically have a turnover ranging from INR 50 crore to INR 1,000 crore. The company wants to aim at companies that have INR 5,000 crore turnover and to become the online-first sales and marketing engine for Asian brands to sell into 100+ countries globally. By the end of this year, the company will be adding 3,000-4,000 companies to their client base.
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