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How B2B Startup Moglix Is Using Tech To Automate Supply Chain For 200+ Enterprises, 100K SMEs In Manufacturing Industry

How B2B Startup Moglix Is Using Tech To Automate Supply Chain For 200+ Enterprises, 100K SMEs In Manufacturing Industry

“In future, as an alternative of purchasing bananas in a grocery save, you can pass, select them off a tree in a digital jungle.” This declaration from a Japanese enterprise government Yasuhiro Fukushima, very really, specifies the extent of ease, ecommerce has taken its millennial purchasers. However, not all industries have been able to benefit yet. Of many different troubles, the Indian manufacturing enterprise, which contributes sixteen.7% to Indian GDP, and is further predicted to percentage 25% of the overall GDP by 2020, is suffering hard to remedy the supply chain automation snag. The 200 people group of Noida-based Moglix is decided to remedy this and take a pie of $700 Bn well worth Indian B2B ecommerce market, on the identical time.

Moglix changed into launched via ex-Google government Rahul Garg in 2014 after taking an in-intensity experience of the B2B markets in China, Taiwan and even Africa. The Noida-primarily based startup basically objectives manufacturing organizations asserting turnover among $15.Five Mn (INR a hundred Cr) to $1.Five Bn (INR 10,000 Cr), and SME’s to assist them automate their supply chain on scale, within the gift in large part disorganised marketplace. The middle cognizance of the business enterprise is on procuring and supplying utility-primarily based merchandise in the industrial production space, in classes including protection tools, hardware, office materials and extra.

“B2B ecommerce is definitely one of the oldest tech verticals in the US. After roaming in different markets, I realised that, in most markets, B2B trade has remained in large part offline with low adoption of tech and that digitisation of the market is taking place anywhere almost simultaneously, specifically in emerging international locations which include India. This brought about the inception of Moglix,” starts offevolved Rahul.

After scaling greater than 20x inside the final 18 months in phrases of obtaining users and revenue, the company now claims to have over 2,000 manufacturers across 28+ categories, list over two lakh products in overall. It is gift across 4 places inclusive of  Noida, Delhi, Faridabad, Manesar and Chennai and counts 11 humans in core management positions. During its two and a half years adventure, Moglix has raised close to $20 Mn in three rounds of investment and count names such as Ratan Tata, IFC, Accel Partners as investors, amongst others.

A Glimpse Of  Moglix Journey: The Early Stage Hurdles

As shared with the aid of Rahul, whilst he commenced ideating Moglix, most effective 1.1% of the commercial buying market in the Indian manufacturing indutry was involved in organised distribution. The supplies in production enterprise have always been procured offline, for the closing forty-50 years. This legacy way of doing matters has largely been disorganised and disjointed, as agencies have no longer been capable of automate the supply chain vertical.

Our motto changed into easy. Change the attitude of the management, get them amenable to buying online and trade user behavior,” shares Rahul. But thinking about the hesitation rooted in Indian industries to utilise tech, it was pretty tough to persuade them for Moglix.

After getting a radical concept of the Indian production industry and the present gaps, Moglix platform turned into launched formally in April 2015. While the first few months after release had been spent in tweaking the platform, it changed into simplest in 2016 when the corporation hit its stride. They went from one area to two, Delhi and Noida list 10 classes and 50 manufacturers.

“So, in 2016, folks that chorus, grew to become to ‘Yes, it MAY show up’. And with the rollout of tasks consisting of Digital India, Make in India, similarly propelled hobby in manufacturing/business B2B, ” stated Rahul. “However, the eventual demonetisation force in November 2016, firmly cemented digital bills and, finally, conducting enterprise on-line within the minds of the general population. Thus, now in 2017, it has boiled all the way down to, ‘B2B ecommerce will take place. And I don’t recognize the way to do it, so please assist me’,” he introduced.

Using Tech To Build Trust For B2B Ecommerce In The Manufacturing Industry

In its ideation segment, Moglix was incubated at SAP Accelerator, Bengaluru, thereby roping within the seeds for getting achievement in the conventional production enterprise. “We discovered that the manufacturing industries most commonly have SAP and Oracle as ERPs to technique the inner procurement approval.”

Moglix software, constructed on the same ERP approval flows, as a consequence got without difficulty aligned with respect to SLA (income stage settlement), tax compliance and payments compliances. Eventually, this helped the firms in production enterprise digitise its procurement deliver chain answer, and then to automate it.

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Delivery and automation are the alternative  pillars of Moglix’s commercial enterprise model. “Delivery is the maximum crucial aspect of what we do. So, we have divided delivery into two categories. A portion of the shipping is executed by way of Moglix itself, whilst the rest of it's far exceeded over to 0.33-party prepared and neighborhood disorganized players,” said Rahul.

At present, Rahul claims that the organization serves over 25,00 pin codes in India for SMEs. For the larger customers, the transport system is split zonally. West, North, and South. Incidentally, Moglix is not energetic in East India and has no presence there. The motive for this, that Rahul offers, is loss of ease of doing business, the small spread of the overall industrial belt in the vicinity as compared to say North India or South India.

Moglix similarly utilises generation to set well timed reminders, ship price comparisons and up to date category of merchandise to ensure smooth delivery of purchase orders. In recent times, they've additionally added Green GST in June 2017 as a SaaS product. “The GST has impacted the producing quarter most undoubtedly, given the quantity of indirect taxes they incurred. Green GST automates the new taxing guidelines and payments compliances for our current clients in a single seamless platform,” he provides.

Moglix: Automating Supply Chain Of two hundred Large Manufacturing Companies, 100K SMEs And More

Moglix now caters to both SMEs and large manufacturing groups with tens of hundreds in turnover. It counts names together with LoMax, Havell’s, Kirloskar and its clients are spread over the car, pharma and FMCG sectors. In 2017, they declare to have 200 big customers and approximately 100K SMEs that they do enterprise with and a combination of want-based and recurring orders. The common ticket size is $155 (INR 10,000).

As shared by using Rahul, for the bigger customers, they provide bulk discounts, ERP associated adjustments and great-tuned pre-ordering SLAs (income degree agreements), where Moglix makes its sales is by way of charging a certain percent as commission on each transaction.

Here, the primary concern is to make certain that manufacturing vegetation run easily and do not shut down for loss of substances. They additionally utilise the present day SAP-compliant structures to enable SLAs which might be carefully and accurately calibrated.

Lastly, they keep concerned relationships with these customers to make sure smoother tactics. “It is unreasonable to expect that producers’ mindsets will not appear in a unmarried month. It is a non-stop technique,” said Rahul.

Dealing With Competitors, Fluctuations In The Market And What Lies Ahead

Demonetisation has impacted most industries in a few way or the alternative. While digital bills and fintech, in fashionable, have largely benefitted from the drive, other organizations like the ones in production industry which had been formerly depending on coins transactions took a hit. One of these businesses became B2B ecommerce organization Tolexo. In the first half of 2017, Tolexo introduced layoffs, bringing up demonetisation as a primary motive for the equal, observed with the aid of shutting down the agency totally.

The mantra for fending off such pitfalls stays the same for all. “If one isn't able to figure out the trouble and the solution for it, then destiny remains undecided,” stated Rahul.

While this precise competitor ended up going quietly into the night time, Moglix does have opposition from other agencies such as Industrybuying, Urjakart, WholesaleDock, amongst others. In addition, AmazonBusiness which has acquired in extra of $50 Mn in funds to penetrate Indian SMEs and automate their deliver chain desires, is now a sizable participant within the B2B ecommerce space.

But Rahul stays undeterred. “We don’t worry about our competitors. Our primary understanding is to parent out how customers purchase offline and convert them into on-line customers. As I noted already, this is a continuous system. Not an in a single day one.”

And Rahul does appear to have a plan. Although he declines to show actual sales figures, the Moglix group is now getting ready to increase to a few greater locations in India. Over the subsequent 18 months, the employer wants to pass after the automobile belt in Pune, Chennai and Delhi-NCR. They also are trying to aggressively collect 1,000 huge call customers.

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East India remains a no-pass because Moglix enters a new marketplace best after cautiously analyzing several factors which includes ease of doing commercial enterprise, how huge the marketplace is, or if it has a robust industrial belt. “If the answer to all these questions is nice and the numbers healthy up, then it is only a count number of the way Moglix can add price to the region,” Rahul says.

Editor’s Note

For a corporation which include Moglix, which changed into started in one of the oldest and unsexiest verticals, B2B ecommerce, the opportunities that lie ahead are a special tale.

With companies becoming globally competitive and decisions concerned about the speed of notion, automation is the brand new key-word for any industry. The current takeover of Corus with the aid of Tata Steel and the bid by way of India’s aluminum main Hindalco for Novelis, display how a number of the groups inside the Indian manufacturing industry are aggressively pursuing international growth opportunities. As advised by Automation Industry Association, the increase of corporations in production industry will as a result be decided through their ability to gain convergence among people, methods, and generation. And this convergence is executed through collaborative automation.

Be it car, pharmaceutical, industry materials or another section of producing industry, supply chain performs a primary function inside the increase and enlargement of the enterprise. An effective deliver chain control not only helps a commercial enterprise in allowing planners to appropriately estimate destiny needs for supply & extends to execution with the planning of their flora, transportation & logistics, but also enables in estimating destiny demand for its products.


At gift, Asia is a number to 3 economies viz. China, Japan & India and account for greater than 35% of worldwide GDP. And being a kingdom with the youngest populace of all, India has the possibility to scale a great deal faster, with the manufacturing industry contributing a prime element. In line with the tech solutions provided through B2B ecommerce companies which includes Moglix, and different to be had technology together with RFID, the establishments want to attend to warehousing, inventory control, in addition to transportation for maintaining an green supply chain control. Thus making the India Vision 2020 subsequently genuine.

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