Rahul Garg was always an ambitious young man. He never was the type of person to work under someone; being a free spirit, Rahul decided early on that he’d do something of his own, and he very surely did exactly that. He was part of six (yes, six) start-ups – GoVoyagin, 1click.io, Tookitaki, CatchThatBus, Mobikon and Venuelook. But then he got accepted by Google and very soon, he became their Asia Pacific Head of Ads and Strategy.
But the feeling of doing something on his own never left him. And because of that, he left Google and founded Moglix in August 2015, a one-stop destination for all types of industrial tools. Currently, the e-commerce platform boasts of hundreds of thousands of B2B and B2C products, including (and not limited to), tools, lighting, electrical and hardware. In fact, their products are sourced from over 200+ reputable brands, including industry bigwigs like Bajaj, Havell’s, Anchor and Ambika.
So what exactly is it that the company aids at doing? For that, the uninitiated need to know the condition of India’s industrial goods market. The problem with is that a majority of the sales happen offline. And even though buyers are moving online, they don’t know where to shop. Till date, no major player has stepped up to fill in this market, and this is exactly what Moglix wants to do.
Another problem that this market faces is that even though it’s widespread across metros, there’s no way for people (or companies) from smaller towns to have access to good products. They are forced to rely on local maal. And for those buyers who actually wade through local brands to opt for national brands, they have to deal with products that are sold on their MRP (with no scope for discounts) if they’re lucky, and beyond the MRP if they’re unlucky.
And if the poor price transparency wasn’t enough, most buyers are forced to buy what they’re given (instead of what they actually require). That’s because there’s not much demand for specialized tools, and since there’s no demand, there’s no supply. It’s a vicious cycle which Moglix wants to change. This startup has already removed any and every middleman possible in the trade by getting customers directly in touch with dealers approved by the brands themselves. What this means is that there will be no more inflated prices, and home deliveries can be made to 10,000 pin codes serviceable across India.
In fact, their growth has been phenomenal enough to warrant a $1.5 million for pre Series A round of funding from Accel Partner and Jungle Ventures. Why? Because the company plans on going global. A big portion of the funding will be utilized to improve the company’s technology platform, developing a more consistent enterprise resource planning & purchase order system, and bringing corporate buyers into an e-commerce partnership with Moglix. But the biggest portion of the funding, however, will go to marketing, as is always the case with any company about to expand.
As acknowledged by Rahul Garg, the founder of Moglix, Accel has an in-depth understanding of the US and Indian e-com markets, seeing how they were the ones who made websites like Etsy and Flipkart what they are today. Of course, Accel’s global presence is just the cherry on top of the cake for a startup as young as Moglix. Jungle Ventures, on the other hand, has a reputation for helping start-ups expand beyond Asia, something which is going to prove to be extremely important for Moglix to establish a pan-Asia presence.
Currently, the Asian industrial products market is growing exponentially; engineering goods alone comprise a quarter of the $300 billion+ industrial Asian market. Moglix aims at being the 1st ever global e-marketplace from South Asia in this category. And with 100+ international companies already in Rahul’s mind, he aims at tapping on the international market of Business and Industrial Supplies which is currently worth a whopping $1 trillion.
So what exactly is it that makes Moglix stand out from competitors like Flipkart and Snapdeal? Well, for starters, these companies offer very basic tools and industrial supplies. Moglix, on the other hand, has in-depth categories like cordless power tools, fall protection and washers, which cater to the varying needs and requirements of consumers. Second, they offer free shipping for orders as low as INR 250, a feat yet to be paralleled by any e-commerce website in India selling industrial tools. Looks like their partnership with Blue Dart and Delhivery surely paid out.