MOGLIX

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MOGLIX

MOGLIX BUSINESS MODEL

Moglix (B2B) Moglix Business Moglix SaaS

E-commerce Platform provides enterprise provides cloud based


for industrial products procurement solutions contract management
solutions

Moglix

 B2B E-Commerce platform for industrial products.


 It is through the website moglix.com
 Supplier Portal.
 Cataloging Portal.

Moglix Business

 Specializes in providing enterprise procurement solutions to procurement companies


in the manufacturing sector.
 Provides solutions regarding MRO, packaging, AI, infrastructure etc.
 Buyer’s Portal.

Moglix SaaS

 Provides contract management solutions and contract analysis to procurement


companies.
 Their flagship SaaS product is iCAT.

Moglix is an industrial equipment and supply chain e-commerce platform. To analyze


Moglix's competitive environment, we can use Porter’s Five Forces model, which examines
the forces that affect a company's ability to compete in its industry. Here is the Porter’s Five
Forces analysis for Moglix:

1. Threat of New Entrants


High
 Low Entry Barriers: E-commerce platforms generally have low entry barriers due to
the minimal capital required to set up an online store.
 Established Brand: Moglix's brand recognition and established relationships with
suppliers and customers can act as a barrier to new entrants.
 Technology and Innovation: The need for advanced technology and supply chain
solutions can deter new entrants who may not have the necessary expertise or
resources.

2. Bargaining Power of Suppliers


Moderate
 Diverse Supplier Base: Moglix works with a wide range of suppliers, reducing the
bargaining power of any single supplier.
 Volume of Purchase: As a large buyer, Moglix has significant leverage to negotiate
favourable terms with suppliers.
 Specialized Products: Some suppliers may have specialized products that give them
more power, but Moglix's diverse sourcing strategy mitigates this.

3. Bargaining Power of Buyers


High
 Price Sensitivity: Customers in the industrial sector are often highly price-sensitive,
increasing their bargaining power.
 Availability of Alternatives: There are many alternative platforms and suppliers in the
market, giving buyers more choices and leverage.
 Large Orders: Buyers making large orders can negotiate better terms, increasing their
power.

4. Threat of Substitute Products or Services


Moderate
 Alternative Procurement Channels: Traditional procurement methods, such as direct
purchasing from manufacturers or local distributors, can serve as substitutes.
 Technological Advancements: New technological solutions or platforms offering
more efficient procurement processes can also be substitutes.
 Product Differentiation: Specialized or unique products provided by Moglix may have
fewer substitutes, reducing this threat.

5. Industry Rivalry
High
 Competitive Market: The B2B e-commerce market is highly competitive with players
like Amazon Business, Industry buying, and other regional competitors.
 Price Competition: Intense price competition can erode margins and profitability.
 Service Differentiation: Companies compete on service quality, delivery speed, and
technological innovation, adding to the intensity of rivalry.
MAJOR COST DRIVER

Procurement Selling and


Employee Others
of Goods Advertising
Benefits

Inside Moglix’s Financial Report Card


The startup saw its total expenditure jump 80.5% to $593.6 Mn (INR 4,941 Cr) in FY23 from $328.8
Mn (INR 2,736.8 Cr) in FY22.
 Procurement Cost, The Biggest Expense: Just like other ecommerce marketplaces,
procurement was the biggest cost for Moglix. It spent $527.1 Mn on buying goods, an
increase of 84% from $286.5 Mn in the previous fiscal year.
 Employee Cost Rise Despite Layoffs: Employee benefit cost, referred to as administrative
expenses, was the second biggest contributor to the startup’s expenditure. Administrative
expenses grew 35.5% to $35.3 Mn in FY23 from $26.1 Mn in the previous year. Employee
benefit expenses rose despite the startup laying off around 40 employees during the year
under review. However, some reports suggest that it laid off around 200 employees. As per
LinkedIn, Moglix currently has 1,237 employees.
 Selling & Advertising Expenses Grow: Meanwhile, selling and advertising expenses rose to
$11.5 Mn, up 23% from $9.4 Mn in the previous year.

In FY23, the startup also made an investment worth $3.9 Mn in Delhi-NCR based EV three-wheeler
manufacturer – Euler Motors in FY23. Besides that, it invested $7.2 Mn in a mutual fund scheme.

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