Moglix Acquires Khatema Fibres for INR 80 Crore to Strengthen Sustainable Packaging Portfolio
- ByStartupStory | November 22, 2024
Moglix, a leading B2B marketplace unicorn, has announced the acquisition of Khatema Fibres, a manufacturer of eco-friendly paper products, for INR 80 crore (approximately USD 9.4 million). This strategic acquisition is set to enhance Moglix’s sustainable packaging portfolio and reinforce its position in the industrial procurement segment.
Khatema Fibres, founded in 1990, is renowned for its sustainable paper manufacturing capabilities, boasting an annual production capacity of 50,000 metric tons. The company offers a diverse range of products, including high-strength kraft paper, interleaving paper, tissue variants, food-grade packaging, and more, catering to industries seeking eco-friendly alternatives.
The integration of Khatema’s manufacturing capabilities into Moglix’s operations is expected to streamline production processes, reduce lead times, and improve overall operational efficiency. This acquisition aligns with Moglix’s commitment to sustainable practices and efficient operations in the industrial procurement space.
“We are delighted to welcome Khatema Fibres into the Moglix family. This acquisition not only expands our manufacturing footprint but also enables us to deliver greater value as we meet the dynamic demands of the market,” said Rahul Garg, Founder and CEO of Moglix.
The acquisition comes as Moglix is rapidly expanding its services with its Next Day Delivery initiative, which is currently operational in 12 cities. The company plans to extend this service to 40 cities, enhancing delivery speeds and ensuring greater customer satisfaction. Moglix is also eyeing entry into five new manufacturing categories to diversify its offerings, further bolstering its growth and creating new opportunities for local farmers and artisans.
Founded in 2015, Moglix offers a wide range of industrial products, including electrical supplies, power tools, motors, and medical supplies, via its robust online platform. The company has garnered significant attention, raising USD 120 million in its Series E funding round in 2021, with prominent investors such as Falcon Edge Capital, Harvard Management Company, Tiger Global, and Sequoia Capital India. In addition, Moglix has invested USD 50 million into its supply chain financing arm, Credlix, with plans to expand into the US and Mexico.
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