Moglix – Reimaging manufacturing infrastructure in the UAE
UAE lies at the crossroads of the manufacturing supply chain routes that crisscross across the world. Technology penetration in the Middle East region has already attained a threshold level which is visible from the success of B2C e-commerce. So, technology adoption is not a challenge. Rather the challenges we have been resolving in the Middle East are those related to limited product assortment of suppliers, costs of distribution, warehousing, and logistics, and enabling manufacturers realize their mandate for creating end-customer value.
Since launching in the UAE, we have channeled existing partnerships to secure symbiotic collaborations across manufacturers, suppliers, distributors, specialists, and consultants. The B2B e-commerce platform, moglix.ae, provides a catalog of over 500,000 industrial products spanning 50+ categories. It provides insights on metrics like the expected time of arrival, lead time, and the turnaround time. Such data enables agility at scale in procurement decision-making frameworks for customers and suppliers. They ensure that end-to-end supply chains can withstand macroeconomic shocks and disruptions.
Silver bullet to mitigate Supply Chain Disruptions
The manufacturing sector in the middle east, prior to the pandemic, relied on a highly fragmented supplier base, and with a few exceptions, it wasn’t standard practice to replace the many suppliers with a few or just one. A manual and relationship-led procurement and supplier management process meant limited adoption of digital tools such as ERP systems. COVID-19, though has been an epic tipping point for the intense digital transformation of the supply chain industry in the Middle East region.
According to market analysts Ventures Middle East, digital transformation initiatives in supply chain have become increasingly powerful and businesses that make use of it are expected to stay resilient. The Gulf Cooperation Council (GCC) countries are expected to continue to invest heavily in digital transformation solutions in supply chain as it tries to enhance its position as a hub for international commerce in a pandemic scenario as well.
Well-planned and well-implemented digital transformation offers the opportunity to leapfrog to a new, digitally-enabled future ahead of competition, crises, and most importantly, customer expectations.
Next for Digital Supply Chain Transformation: Connectivity, Convenience, and Analytics
The dramatic shift towards a digital supply chain has been all too evident post-pandemic, with a full realization that it not only makes them more competitive and resilient – there is also an economic upside.
Moglix raises USD 250 Million at USD 2.6 Billion valuation
Dubai, UAE: Moglix has raised $250 Million in its latest Series F funding round, at a valuation of $2.6 Billion. This investment was led by Tiger Global and Abu Dhabi-backed Alpha Wave Global with Hong Kong-based Ward Ferry coming on board as a new investor. Early investors, who had invested in Moglix during the seed stage have seen an 80X return on their investment in this B2B commerce pioneer.
One of India’s largest and fastest-growing B2B Commerce companies, Moglix provides solutions to more than 500,000 SMEs and 1000+ large manufacturers across India and the UAE. Moglix has a supply chain network of 16,000+ suppliers, 40+ warehouses, and logistics infrastructure. Moglix works with manufacturing and infrastructure companies to transform their end-to-end supply chain, from procurement to distribution. In May 2021, Moglix became the first B2B Commerce unicorn in the manufacturing sector, raising $120 Million.
Moglix debuts in the UAE
Moglix connects suppliers with a fragmented buyer base through its data science-driven technology. The company aims to build a digital operating system in the UAE that is closely aligned with the digital initiatives of the Emirates.
India’s Moglix, the online industrial business-to-business marketplace, with a network of more than 16,000 suppliers, recently set up base in Abu Dhabi’s Kizad after raising US$ 120 million in its latest funding round that valued the company at US$ 1billion. The company operates out the Khalifa Port Free Trade Zone in Abu Dhabi and plans to expand operations across the Middle East.
“We are excited to enter the UAE, a gateway to the GCC and a major hub of global commerce and innovation with a vision to transform into a digital economy,”affirmed Rahul Garg, Founder and Chief Executive, Moglix.
The macroeconomic fundamentals of the UAE are very strong. While we have launched our business in the UAE recently, we have been building our on-ground capabilities, onsite footprint, and team strength since 2020. We have been customizing our supply chain technology and internal business processes. Moving forward we aim to expand our breadth of offerings in the region and create successful customer collaborations that can serve as case studies for the custom supply chain requirements of different industries. The major challenge for us is the status quo and we are on track to enabling supply chain transformation in the B2B space through the new normal that is emerging.
We have been doing the groundwork in the UAE, building our onsite supply chain capabilities of supplier network, warehousing, and logistics. We are strategically positioned in KIZAD with close proximity to Dubai and Abu Dhabi. UAE is the hub of international trade and cross-border supply chains in the GCC. We aim to leverage our on-ground capabilities in the UAE to scale up our footprint across the entire.
Moglix looking to disrupt business procurement in the UAE
Moglix is looking to bridge that gap between business and consumer buying and introduce technology to business procurement.
The Singapore-based online business-to-business procurement platform recently expanded to Abu Dhabi and Dubai with the ambition of solving the region’s procurement challenges, the result of outdated practices.
“While consumer-tech is benefiting from digital technologies and innovations, business-tech is still largely unchanged from what it was ten years ago. Business procurement still follows the same procedures of getting multiple quotations from the market and going through all the administrative work,”said Malviya.
The online platform will also be deploying more of its solutions in the region, such as procurement options for the construction and manufacturing sectors.
Moglix Expands Business to the UAE
Moglix enters the UAE as part of its global expansion plans. We will enable enterprises across the Manufacturing, Oil & Gas and Infrastructure sectors to transform their end-to-end supply chain, from procurement to distribution. Through our digital platform, supplier and buyer network, and logistics strength,
we bring down cost, enhance sales, improve operational efficiency, and make the supply chain touchless.
“We are excited to enter the UAE. UAE is a gateway to the GCC and a major hub of global commerce and innovation with a vision to transform into a Digital economy. The UAE government’s mission and investment in digital upskilling is unmatched and we are looking to collaborate with local talent to jointly drive digital transformation. Our vision to build the operating system for commerce is closely aligned with the Digital UAE initiative to make the UAE a Smart Country and we are looking forward to empowering stakeholders to achieve this goal.“says Rahul Garg, CEO and Founder, Moglix
Explore Moglix B2B E-Commerce Portal
Moglix recently raised its Series E round of funding led by Falcon Edge Capital through their Abu Dhabi based Alpha Wave Ventures, becoming the first B2B Commerce unicorn in the manufacturing sector, with a total funding of $220 Million and a valuation of $ 1 Billion
Startups fight COVID-19: Moglix fights against India’s oxygen crisis
As India battles the deadly second wave of the COVID-19 pandemic, startups, corporates, and individuals are all rallying together to ensure that they are doing their bit. The biggest challenge in the second wave is the dearth of oxygen cylinders along with crucial medicines.
“We estimate the need for at least 100,000 oxygen concentrators across India. However, each person buying an oxygen concentrator for themselves is not scalable and will lead to inefficient distribution of precious resources. Most people will ﬁnd the cost prohibitive and the requirement short-lived (one to two weeks),”Rahul says.
B2B ecommerce startup Moglix has been supplying PPE, oxygen concentrators, oximeters, thermometers etc. to essential goods and services companies to ensure their employees are protected. It has also distributed 15 million+ PPE kits and safety items amid this pandemic.
The startup has developed a “group sharing model” for increasing the impact of every oxygen concentrator by 100x, and is enabling organisations, NGOs, trusts, and RWAs to create oxygen concentrator banks for patients and providing a safety net for their communities.
“If your organisation would like to join us in this mission to provide a safety network to corona warriors, please write to us at firstname.lastname@example.org. We can help you set up similar network-based models for your organisation and share our learning/ SOPs. Let us come together to do our bit in this ﬁght,”Rahul Adds.
How Technology is Accelerating Value Creation in the Manufacturing Sector
Sandeep Goel, SVP- Technology shares his thoughts on how technology will pave the way for a futuristic manufacturing sector, at the Future Of Work Summit organized by YourStory.
He talks about the impact of COVID-19 and how it transformed the manufacturing sector in India. The pandemic accelerated the shift that Make in India has enabled in the sector, bringing about transformations, both physical and digital, boosting the self-reliance of India’s manufacturing sector.
Sandeep outlined key challenges that continue to persist in the sector, highlighting the need for streamlining order processing, and transaction data integration, and lack of intuitiveness when it comes to the application ecosystem.
He highlighted the role of technology in altering the future of manufacturing. How rapid advancements in digital technologies are revolutionizing business supply chains, and are poised to transform how the procurement function delivers value and enables swift decision-making in the ecosystem. He also talked about the need for constant connectivity as the norm, and how sensors are bringing devices and machines to life in the Internet of Things.
Moglix Welcomes Neelam Dhawan as Board Advisor
Neelam Dhawan, tech pioneer, joins Moglix as board advisor. Neelam has previously worked at Hewlett Packard (HP) Enterprise and Microsoft, IBM and HCl, among other companies.
Currently, she is a supervisory board member at Royal Philips, Netherlands, and non-executive director at ICICI Bank India, Skylo Technologies, Capita PLC, and Yatra Online. Moglix said it plans to start a new phase of global expansion.
“I am excited about my new role as a board advisor at Moglix. Moglix is pioneering supply chain digital transformation in the country and overseas. I look forward to contributing to Moglix’s endeavors to grow and deliver impact globally at scale.”
Neelam has been instrumental in shaping the IT industry in India. Throughout her career, she has repeatedly demonstrated leadership, innovation, and fearlessness, values that we hold in high esteem at Moglix. The scale of operations and innovation that she has successfully implemented, and her vision resonate strongly with the mission of Moglix to reimagine B2B commerce and supply chain at scale globally. We are delighted to have her as the board advisor at Moglix.
Moglix CFO: The role of a CFO goes beyond finance when it comes to startups
Rahul Goel, Vice President- Finance, talks about the challenges and success factors of new-age CFOs. Having worked with both startups and MNC’s, Rahul believes that the role of a CFO goes beyond finance when it comes to startups. He dissects various challenges that CFOs face in the startup world especially in the tech space, followed by the successes that lead around for CFOs.
A finance professional for over two decades, the Moglix CFO believes that two major factors that are often ignored by most financial heads at companies are growth and governance which play an important role in the journey. He stated that Indian companies have yet to understand the business model and efficiency of tech startups so that they can be evaluated correctly.
Given that tech startups ought to have cross-functional leaders, the biggest challenge for a CFO is balancing the speed and agility of the finance operations with the other parts of the business from product to marketing. “In the early stage of that product, the resources might be limited but the speed at which the company wants to run might be very fast,” Rahul added, highlighting the need for CFOs to learn about other domains to react in a quick manner.
One of the most crucial tasks for a CFO is fundraising. A new-age CFO needs to assume responsibility for the complete fundraising cycle — from the timing of the fundraise to creating a healthy financial picture to meeting with advisors to identifying the right strategic partners and attracting the right set of investors.
Rahul states that it is crucial for any company to hire a CFO from the start itself in order to be successful. One needs to be more agile, fast, and innovative in order to reach the business requirements and when it comes to tech startups, CFOs need to be dynamic. He explains how important it is in a tech startup, such as Moglix, to focus on key performance indicators.