Moglix purchases ADI’s industrial goods distribution business in India

• ByStartupStory     |    October 12, 2022

Tiger World-backed industrial items market Moglix has acquired ADI World Distribution’s India distribution enterprise to expand its product portfolio through video surveillance, entry management and fireplace management merchandise.

According to the company, Moglix would incorporate all of ADI India’s options, sales partnerships, physical assets, and staff into its global supply chain ecosystem. The acquisition, Moglix’s third this year, was made for an undisclosed sum in an all-cash agreement. The business chose not to comment on its other two purchases from this year.

The distribution business of ADI in India has been operating for the past 15 years and generates over $300 crore in revenue. Rahul Garg, the founder and CEO of Moglix, revealed in an exclusive interview last month that the company has set aside $100 million as part of its strategy to acquire up to three companies over the course of the coming year.

Moglix, which is owned and operated by Mogli Labs Pvt. Ltd., has acquired two businesses in the past year. The company introduced the digital platform for financing supply chains in February of last year. In November, it purchased the fintech firm NuPhi, which specialised in business financing, for an unknown sum. Additionally, Moglix bought the equipment marketplace Vendaxo the previous year.

The Noida-based Moglix appears to be further deepening its focus on industrial goods distribution with its most recent acquisition. The company announced that it would incorporate all of ADI India’s options, sales partnerships, on-ground assets, and staff into its global supply chain ecosystem.

Moglix, which was founded in 2015 by IIT Kanpur and ISB alumni Garg, offers services in procurement, packaging, supply chain financing, and integrated software. More than 500,000 small and medium-sized businesses (SMEs) and 1,000 massive producers are served by the agency in India and the UAE. More than 16,000 suppliers, 40 warehouses, and related logistical infrastructure make up the Moglix community.

“The combination of ADI India’s distribution network and Moglix’s vision to build India’s largest distribution network for OEM manufacturers across classes and export Indian manufacturing supply chain capabilities to the global marketplace… We will continue to make the most of our resources to build a strong product range and digital supply chain network for our customers and create value for all stakeholders, according to Garg.

Moglix also has major expansion plans for both the Indian market and international markets. According to a previous article by VCCircle, the company has already entered the UAE market and is now looking to expand into Indian micro markets, including the energy, electrical vehicles, hydrogen, and solar verticals.

Moglix raised $250 million as part of its Series F funding round, which was led by current investors Tiger World and Alpha Wave World as well as new investor Hong Kong-based Ward Ferry. Moglix was valued at approximately $2.6 billion earlier this year, eight months after becoming a unicorn in May of last year.

The startup also counts Accel Partners, the World Bank’s private investment arm International Finance Company (IFC), Falcon Edge Capital, Harvard Management Company, and Ratan Tata, who invested in the company in 2016.

Moglix primarily serves the infrastructure and manufacturing industries. Regarding the product, it started with MRO (maintenance, repair, and operations) focused businesses and today has a presence across MRO, packaging, and infrastructure verticals. Additionally, it serves the class of manufacturing-as-a-service.

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