Sector: B2B E-commerce (Industrial Products)
Founded: 2015
Valuation: $2.6 billion (2022)

Overview: Moglix is an industrial B2B marketplace for manufacturing companies, offering procurement solutions for MRO (maintenance, repair, and operations) products. It aims to digitize the supply chain for manufacturing companies by providing an efficient procurement platform.

Challenges encountered:

• Managing procurement complexities in the industrial goods sector, where orders are often customized.
• Building vendor trust in an industry with long-established relationships.
• Difficulty managing inventory due to fluctuating demand from manufacturing clients.
• Inefficient procurement process leading to delays in deliveries.
• High working capital needs due to upfront inventory purchases.

Solutions Implemented:

• Inventory Optimization: Suggested using demand forecasting models to manage inventory levels and ensure availability of high-demand products.
• Vendor Financing: Implemented vendor financing to ease working capital pressures by delaying payment to suppliers without affecting procurement.
• Streamlined Procurement: Introduced a just-in-time (JIT) procurement model to reduce warehousing costs and minimize excess inventory.
• With over $220 million raised from investors like Falcon Edge and Sequoia, Moglix scaled its presence across India and expanded its product categories.

Outcomes Attained:

• Improved inventory management resulted in fewer stockouts and reduced warehousing costs.
• Better cash flow management through vendor financing, allowing for business expansion without liquidity issues.
• Enhanced customer satisfaction due to timely delivery and availability of key products.