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Creating Smooth Supply Chains

Rahul Garg’s Moglix is a disruptor of existing supply chains of B2B businesses in India

Moglix is an Asia based e-commerce company that  specialises in B2B procurement of industrial products. It extends its expertise in supply chain to solve problems related to digitisation of supply chain as well as makes them GST compliant. The company has worked with more than 250 leading organisations such as GSK, Havells, Yamaha, Lumax and Tata Chemicals, and over 100,000 SMEs across India. Operating in cities such as Pune, Ahmedabad, Gurgaon, Noida, Chennai and Mumbai, Moglix is backed by trusted investors such as Ratan Tata, World Bank, Accel Partners and Jungle Ventures.

Elaborating on why the company stands out, 38-year-old founder and CEO Rahul Garg says, “Basically, it’s about understanding the business problem that needs to be solved, and using what we call ‘Business Process + Commerce Engine’ to solve the problem. More specifically, B2B businesses have problems in the environment they are operating in, for which they need one-stop solutions. Especially for procurement of products. So Moglix has built a unique combination of technology, processes and supply chain to solve this problem, deeply working with the manufacturing offices to fulfil procurement needs.”

Speaking about the company’s journey so far, Garg says, “It has been an exciting journey. We have grown multi-fold from where we started. In the last three years, we have grown substantially, both in terms of the number of enterprises we are serving — number of people and number of locations — and the amount of funding that we have raised. We are doing fairly well in continuing to serve more and more organisations.”

With experience across verticals, ranging from auto sector to FMCG sector, to even chemicals and pharmaceuticals, Moglix boasts of a wide portfolio. Regarding strategic partnerships, Garg says, “We have a strategic partnership with SAP. We are partners with SAP Start-up Studio. We have launched a solution that is SAP certified. We were also engaged very closely with GSTN, when we launched our product called Green GST. We have been closely working on GST compliance for big organisations”.

Garg feels the company potential can be viewed in multiple formats. “Today, we are focused on India, and within India, we look at how we can power more than 50 per cent of the manufacturing sector, in terms of one or the other value propositions around creating efficient supply chain, creating walls of consolidation or making the ecosystem GST compliant. We are also looking at what are the right ways we can enable Indian companies to export or expand geographically into other locations,” says Garg.

Moglix is disrupting the existing supply chain in B2B businesses. “It disrupts the system in multiple ways. Previously, supply chains were configured in a particular way, and the manufacturers of the supply chains worked with fragmented set of suppliers. The supply chains were unorganised and unpredictable, and also, they were manual in nature. So we are able to become a one-stop solution, we are able to organise the supply chain,  we are able to make it digital, and we are able to make it GST compliant. So I think that’s the disruption we are causing in this supply chain,” says Garg.

The company works on the classical commerce model of percentage of transaction, which typically varies from 5-15 per cent. For Green GST, Moglix works on the subscription model where it charges technology fee. “It has been an exciting year. I think, in the last two and a half years, we have established a lot of the base things that we needed to, and we are looking at 2018 as an exciting accelerating year for Mogilix”, says Garg.

Growth potential: As the manufacturing sector grows, there will be a need for efficient supply chains and the need to make the ecosystem GST compliant.




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