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Samreen Ahmad · · 3 min readB2B unicorn Moglix cuts losses amid slower growth
Moglix, a Singapore-based B2B ecommerce unicorn, posted a 5.5% year-on-year growth in revenue, according to its most recent set of audited financials for the year ending March 2024 (FY 2024).
This was much lower than the 82% revenue growth it recorded in FY 2023.
Moglix founder Rahul Garg / Photo credit: Moglix
Founded in 2015, Moglix is an ecommerce marketplace for manufacturing and infrastructure companies. With a US$200 billion opportunity in India’s B2B market, the firm aims to transform the sector in a manner similar to the B2C space in terms of innovation and efficiency.
The company seems to be headed in the right direction. Key expenses grew at a similar rate to revenue in FY 2024, but Moglix also managed to cut its losses by 8%, indicating that it is becoming more efficient in its operations.
India largest market
The slower revenue growth resulted from the company “moving away from lower-margin customers,” founder Rahul Garg tells Tech in Asia.
Almost all of the company’s revenue came from sale of traded goods, which stood at US$584.9 million for FY 2024.
Backed by investors such as Tiger Global and Accel Partners, Moglix sells over 700,000 products ranging from office supplies to electrical tools and agriculture equipment. It caters to over 1,000 large enterprises and 500,000 SMEs.
According to Garg, the company aims to achieve net profitability within the next six to 12 months.
India remains Moglix’s largest market, contributing to 97% of its revenue. However, it’s noteworthy that revenue from the United Arab Emirates (UAE) more than doubled in FY 2024. It anticipates “even faster growth and expansion in the Middle East” moving forward, says Garg.
The company also has a presence in Singapore. Garg says that Moglix is exploring a few developing economies for geographical expansion and has set aside funds for potential acquisitions.
Cost discipline
Cost of sales, which includes all the direct costs associated with procuring and delivering products to customers in an ecommerce setup, remained the biggest expense for Moglix. It grew 4.4% year on year in FY 2024.
However, this slightly declined as a percentage of total revenue for the financial year.
The company’s administrative and marketing expenses decreased in absolute terms, though the percentage change was minimal.
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The Singapore-based firm aims to hit net profitability in the next 12 months, according to founder Rahul Garg.
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