Bengaluru-based B2B ecommerce startup Moglix crossed the $500 Mn mark in revenue in the financial year ended March 31, 2023.
The Tiger Global-backed unicorn reported an operating revenue of $560.4 Mn (INR 4,664.7 Cr) in FY23, a jump of almost 83% from $306.9 Mn (INR 2,554.6 Cr) in the previous fiscal year.
The startup earns revenue by selling industrial tools such as power tools, hand tools, adhesives, safety and security and electrical equipment to businesses.
Founded by Rahul Garg in 2015, Moglix sells a wide range of industrial tools and equipment, serving industries such as automotive, cement, chemicals, consumer durables, FMCG, metals, mining, oil & gas and pharmaceuticals.
Being an Indian startup, Moglix earned a majority of its revenue from the country. In FY23, it generated revenue worth $550 Mn from India, while around $8 Mn was generated from the UAE and $1.7 Mn from Singapore.
It must be highlighted that the startup significantly increased its business in the UAE as compared to the previous year. In FY22, its revenue from the UAE stood at a meager $300K. The startup forayed into the UAE market in 2021, just after it raised $120 Mn and turned unicorn.
Eight years and running, Moglix continued to see its losses rise. In FY23, the startup’s loss increased 12% to $23.5 Mn (INR 196 Cr) in FY23 from $21 Mn (INR 175.3 Cr) in FY22.
Inside Moglix’s Financial Report Card
The startup saw its total expenditure jump 80.5% to $593.6 Mn (INR 4,941 Cr) in FY23 from $328.8 Mn (INR 2,736.8 Cr) in FY22.
Procurement Cost, The Biggest Expense: Just like other ecommerce marketplaces, procurement was the biggest cost for Moglix. It spent $527.1 Mn on buying goods, an increase of 84% from $286.5 Mn in the previous fiscal year.
Employee Cost Rise Despite Layoffs: Employee benefit cost, referred to as administrative expenses, was the second biggest contributor to the startup’s expenditure. Administrative expenses grew 35.5% to $35.3 Mn in FY23 from $26.1 Mn in the previous year. Employee benefit expenses rose despite the startup laying off around 40 employees during the year under review. However, some reports suggest that it laid off around 200 employees. As per Linkedin, Moglix currently has 1,237 employees.
Selling & Advertising Expenses Grow: Meanwhile, selling and advertising expenses rose to $11.5 Mn, up 23% from $9.4 Mn in the previous year.
In FY23, the startup also made an investment worth $3.9 Mn in Delhi-NCR based EV three-wheeler manufacturer – Euler Motors in FY23. Besides that, it invested $7.2 Mn in a mutual fund scheme.
Founder Makes $10 Mn By Selling His Shares
It must also be noted that during the year under review, Moglix bought back shares worth $10 Mn (INR 83 Cr) from founder Garg. He received a salary of $253.7K (INR 2.1 Cr) in FY23. Even in FY22, the startup bought back shares worth around $1 Mn from Garg, while he took home $262K as remuneration.
As on March 31, 2023, Garg held a 12.6% stake in the startup.
Moglix, valued at $2.6 Bn, is one of the largest players when it comes to providing an end-to-end B2B ecommerce platform for tools. To date, it has raised $472 Mn across multiple rounds and counts Peak XV Partners, Accel, Bessemer Venture Partners, Alpha Wave Global, IFC, among its backers.
The B2B marketplace is currently pegged at $20 Bn and is expected to grow to $200 Bn by 2023. Moglix competes against the likes of IndiaMart and ShakeDeal in this market. IndiaMart reported an operating revenue of INR 985.3 Cr in FY23, with a profit of INR 283.8 Cr.
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