Tiger Global-backed industrial goods marketplace Moglix has acquired ADI Global Distribution’s India distribution business to bolster portfolio across video surveillance, access control and fire control products.
Moglix will integrate all ADI India’s offerings, sales partnerships, on-ground assets and the workforce into its global supply chain ecosystem, the company said.
The transaction was made for an undisclosed amount in an all-cash deal, marking Moglix's third acquisition this year. However, the company declined to comment on its other two acquisitions made this year.
ADI's India distribution business has been operating since the last 15 years and it has a turnover of around Rs 300 crore.
Last month, founder and chief executive at Moglix, Rahul Garg told VCCircle in an exclusive interaction that the company has earmarked $100 million as part of its strategy to acquire up to three companies in the next 12 months.
Run and operated by Mogli Labs Pvt. Ltd, Moglix has made two acquisitions over the past year. In February last year, the company launched digital supply chain financing platform Credlix, which acquired trade financing focused-fintech startup NuPhi for an undisclosed amount in November. Last year, Moglix also bought machinery marketplace Vendaxo.
With its latest buyout, Noida-based Moglix looks to further deepen its focus on industrial goods distribution. The company said in a statement that it will integrate all ADI India’s offerings, sales partnerships, on-ground assets and the workforce into its global supply chain ecosystem.
Founded in 2015 by IIT Kanpur and ISB alumnus Garg, Moglix offers service across procurement, packaging, supply chain financing and integrated software. The firm caters to more than 500,000 small- and medium-sized enterprises (SMEs) and over 1,000 large manufacturers across India and the UAE. Moglix has a network of more than 16,000 suppliers, over 40 warehouses and related logistics infrastructure.
“The integration of ADI India’s distribution network aligns with Moglix’s vision to create India’s largest distribution network for OEM brands across categories and take Indian manufacturing supply chain capabilities to the world…on growth and global expansion, we will continue to utilize funds to build a strong product portfolio and digital supply chain network for our customers and create value for all stakeholders,” said Garg.
Moglix also has major expansion plans for the Indian market and overseas. The company had entered the UAE market last year and is looking to broaden its horizon into Indian micro markets, which comprises energy, electric vehicles, hydrogen and solar verticals, VCCircle had earlier reported.
Valued at around $2.6 billion earlier this year within eight months of turning into a unicorn in May last year, Moglix raised $250 million as part of its Series F funding round led by existing investors Tiger Global and Alpha Wave Global and new investor Hong Kong-based Ward Ferry.
The startup also counts Accel Partners, World Bank’s private investment arm International Finance Corporation (IFC), Falcon Edge Capital, Harvard Management Company and Ratan Tata, who had invested in the startup in 2016.
Moglix caters largely to the manufacturing and infrastructure segments. On the product side, it had started with MRO (maintenance, repair and operations) oriented companies and now has presence across MRO, packaging, infrastructure verticals. It also caters to manufacturing-as-a-service category.