Kul Bhushan · · 2 min readSequoia-backed B2B marketplace unicorn acquires Indian ecommerce startup
India’s Moglix, a business-to-business marketplace for industrial goods, has acquired online used machinery platform Vendaxo for an undisclosed amount.
Moglix said the acquisition would help it give manufacturers access to high-value capital goods at economical prices. The company estimates that India’s used-machinery market is worth 640 billion rupees (US$8.6 billion).
Ratan Tata, chairman emeritus at Tata Group with Moglix founder Rahul Garg
Founded in 2017, Vendaxo provides used or surplus machinery to micro, small, and medium-sized businesses, as well as large manufacturing enterprises like Siemens, Arvind India, Marico, Raymond, and Torrent Pharma. According to Vendaxo, it has 40,000 users on its platform who buy and sell machinery from its verified listings of 31,000 stock-keeping units.
“Our integration with Moglix will facilitate access to Moglix’s integrated suite of technology, credit lines, distribution network, and on-ground supply chain capabilities for greater market penetration,” Vendaxo founder Poonam Choudhary said in a statement.
The acquisition comes after Moglix brought Falcon Edge Capital and Harvard Management Company on board as investors in its US$120 million series E fundraise last month, which gave Moglix a push into the unicorn club. Tiger Global, Sequoia Capital India, and Venture Highway had also participated in the round.
Ratan Tata, chairman emeritus at Tata Group was an early investor in Moglix, having made an undisclosed investment in the firm in February 2016.
Currency converted from Indian rupees to US dollars. Rate: US$1 = INR 74.68
Editing by Collin Furtado and Arpit Nayak
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