The Indian Manufacturing Industry which contributes to 16.7 % of Indian GDP is expected to go up to 25% of the total GDP by 2020 that is around $700 Bn worth Indian B2B e-commerce market.
It has been observed that only 1.1% of the industrial buying market in the manufacturing industry is involved in organized distribution. The industry is working in quite a disorganized manner and has been difficult to automate the supply chain vertical.
The Startup Moglix is working on getting the process to be set in this vertical. The idea behind this is to change the mindset of the management to buy goods online and to shift the user behavior. This is quite a task which the team is ready to wait and work with the industry to convince them.
The Moglix platform was launched officially in April 2015 in SAP accelerator in Bengaluru as the manufacturing industries commonly used SAP and Oracle as ERP’s to process the internal procurement approval.
The Moglix software, built on similar ERP approval flows is aligned with respect to SLA(sales level agreement) tax compliance and payments compliances. This helped the Moglix to break the ice in the manufacturing industry to take the initial steps for digitization of procurement supply chain solution and to automate it.
Delivery and automation are two main features of Moglix. One part of the delivery is done by Moglix and the other is handed over to the third party organized and local disorganized players.
With GST in place, in June 2017 Green GST was launched as Saas product which automates the new taxing regulations and payment compliance for existing clients in one platform.
In 2017, Moglix claims to have 200 large customers and around 100 SMEs and have a turnover of $1.5 Bn turnovers and have taken a big leap forward in last 18 months. With 3 rounds of funding of $20 Mn from Ratan Tata, IFC, Accel Partners as investors they are in competition with Urjakart, Wholesale Dock, and Industry buying.
Asia is found to be having 35% of world GDP. Moglix does have a big chance in hand to succeed in case warehousing, inventory management, transportation is taken care for efficient supply chain management.