Business-to-business e-commerce unicorn Moglix, which is operated by Mogli Labs (India) Pvt. Ltd, saw a rise in its net loss in the financial year through March, despite displaying growth in its top line.
Noida-based Moglix, which is backed by marquee investors like Tiger Global, Alpha Wave Global (erstwhile Falcon Edge Capital), Ward Ferry, PeakXV Partners (earlier called Sequoia India & Southeast Asia) and IFC, among others, saw its standalone loss widen 33% to Rs 194 crore in FY23. Its loss in the financial year 2022 stood at Rs 146 crore.
On the other hand, the company’s standalone revenue from operations grew nearly 82% to Rs 4,128 crore in FY23 from Rs 2,270 crore in the previous fiscal. Its primary source of income is sale of products, which stood at Rs 4,093 crore in FY23.
Moglix, which was founded in 2015 by Rahul Garg, operates an industrial marketplace for manufacturing and infrastructure companies. It helps companies like Hero MotoCorp, Tata Steel, NTPC, Unilever, Vedanta and Air India, among others, in procurement and distribution.
It provides supplies to more than 500,000 small and medium-sized enterprises and over 1,000 large companies throughout India and the UAE. It has a vast network comprising over 16,000 suppliers and more than 40 warehouses.
The company had last raised $250 million in its Series F funding round at a valuation of $2.6 billion from investors like Tiger Global, Alpha Wave Global and Ward Ferry. In total, the firm has raised $470 million to date.
In FY23, Moglix saw its expenses surge 95% to Rs 4,335 crore from Rs 2,214 crore in the previous year, as a result of a sharp rise in its employee and procurement-related costs.
Its purchases of stock-in-trade jumped 83% to Rs 3932 crore in FY23 from 2143 crore in the fiscal before. On the other hand, its employee benefits costs surged 42% to Rs 197 crore from Rs 139 crore in FY22.
Despite increased expenses and net loss, Moglix improved its financial health in the last financial year. To begin with, Its EBITDA margin improved to -3.16% in FY23 from -5% in the previous fiscal.
Similarly, its ROCE (return on capital employed) bettered to -22.4% from -35%. Its PAT margin also improved by 177 basis points to -4.69.
In unit economic terms, the company spent Rs 1.03 to earn a single rupee in FY23. It had spent Rs 1.05 to make a single rupee in the fiscal before.
Meanwhile, the company is said to be in talks with both existing and new investors for a $30-35 million secondary round that will involve a substantial portion of employee stock option buyback, Mint reported in August.
