Technology for MSMEs: The acquisition would enable Tiger Global and Ratan Tata-backed unicorn Moglix to offer high-value capital goods at economical prices to manufacturers particularly MSMEs.
Technology for MSMEs: E-commerce platform for industrial tools and equipment for MSMEs Moglix has acquired marketplace for used machinery Vendaxo for an undisclosed sum. The acquisition would enable Tiger Global and Ratan Tata-backed business-to-business (B2B) unicorn Moglix to offer high-value capital goods at economical prices to manufacturers particularly MSMEs that have been looking for affordable solutions amid working capital crunch due to the Covid pandemic. According to the MSME Ministry’s FY21 report, 31 per cent (1.96 crore) of 6.33 crore MSMEs in India are in the manufacturing sector.
“We started Moglix with the vision of providing doorstep access to high quality, affordable industrial products. The integration of Vendaxo with our platform is aligned with our vision to bring the ease and speed of e-commerce to the manufacturing sector,” said Rahul Garg, Founder & CEO, Moglix, in a statement. The startup had last raised $120 million in its Series E funding round in May this year at a valuation of more than $1 billion and has so far raised $220 million in fundraising. Infra.Market is the only other unicorn in India focusing on manufacturers to offer construction material.
Founded in 2017, Vendaxo was a B2B e-commerce platform that offered used machinery liquidation solutions to MSMEs and large manufacturing enterprises such as Siemens, Arvind India, Marico, Raymond, and Torrent Pharma. The used machines and equipment marketplace enabled 40,000 users to buy and sell from its verified listings of 31 thousand SKUs through its digitally enabled and secured escrow process. Moglix said that India’s used machinery market is nearly worth Rs 64,000 crores and is a critical lever for driving sustainable manufacturing in the country.
“Through Moglix, we will be able to provide solutions to a larger number of customers and on a much bigger scale. Our integration with Moglix will facilitate access to Moglix’s integrated suite of technology, credit lines, distribution network, and on ground supply chain capabilities for greater market penetration,” said Poonam Choudhary, Founder, Vendaxo. According to Redseer’s estimates, the online B2B market could be more than $60 billion by 2025. Earlier this year, Moglix had forayed into the supply chain financing market with the launch of its digital platform Credlix to offer collateral-free working capital to its suppliers, most of whom are MSMEs.