An interesting B2B e-commerce startup announced a funding of USD 250 million
B2B E-commerce is getting a lot of popularity because of the ease it brings to a business and its customers.
Let us talk about B2B e-commerce. First of all, we should know B2B e-commerce is a short form of business-to-business electronic commerce. This refers to the mode of selling goods and services the online medium which is basically the online sales portal. This medium is used to improve and increase the efficiency and make the efforts of the sales more effective.
Here the sales representatives, who are actually the human assets of the company, do not take orders themselves, instead, orders are given by the customers through telephone or e-mail, which reduces the overhead costs of the company.
There are some differences between B2B and B2C. Some of them are-
In B2C there is a single buyer, while in B2B there are multiple decision-makers
In B2C there is fixed customer price, while in B2B there are customer-specific pricesIn B2C the mode of payment is direct payments, while in B2B there is payment on credit sales
In B2C the frequency of purchases is low, while in B2B there are recurring purchasesIn B2C a purchase can be made in a single visit, while in B2B there is a long-lasting relationship between the customer and manufacturer
In B2C the purchase is made because the customer likes it, while in B2B the purchase is made because it is a part of the job
In the year 2020, the B2B e-commerce industry around the world was of a value of USD 6.64 trillion. This market value is predicted to expand at a CAGR of 18.7% from the year 2021 to 2028. Let us now talk about the funding of a B2B e-commerce startup that has taken place recently and has been covered in a lot of media.
Announcement of funding of a B2B e-commerce startup
The B2B e-commerce startup, Moglix has raised funds worth USD 250 million, as announced on January 28, 2022. This round of funding that we are talking about is the Series F round of funding and was led by Tiger Global and Alpha Wave Global. The new investor also joined the startup with this round of funding. That new investor is Ward Ferry, who is based in Hong Kong.
After this round of funding, many seed investors of the startup have exited the startup after seeing an 80 times return on their stakes. The value of the startup after this round of funding has increased to USD 2.6 billion. In May 2021, the startup had raised USD 120 million and had become the first B2B commerce unicorn in the manufacturing sector. The startup in total has raised funds of USD 470 million to date.
About the B2B e-commerce startup that has announced its funding
The startup was founded in the year 2015 by Rahul Garg who is also the CEO of the startup and has its headquarters in Noida. The startup is an e-commerce company that is intensively inclined towards B2B procurement of industrial supplies, in particular, MRO, Safety, Electricals, Lighting, Cleaning, and Housekeeping, Office stationery, and Supplies, Power Tools, and many other industry essentials.
The startup takes pride in delivering world-class services and the clients of the startup are just aware of the fact that it just does not deliver products, it delivers a satisfying experience, which has enabled the startup to forge a strong relationship with its customers.
The mission of the startup is to clear the gap between B2B merchants and consumers. The vision of the startup is the development of an exclusive digital-trade ecosystem, which is customized to satisfy the diverse needs of buyers and sellers.
The startup has more than 450000 assortments of industry essential products which are listed in more than 30 categories, has more than 150000 SME clients in addition to more than 250 enterprises and corporates, has more than 2000 supplier base across the nation to address the diverse requirements of the clients, and is deliverable to more than 25000 pin codes across the country.
About Tiger Global
Founded in March 2001 by Chase Coleman III, Tiger Global is an investment firm that has its headquarters in New York, United States. The main focus of the investment fund is on the industries working in the department of the Internet, Software, Consumer, and Financial Technology. The products of the investment fund are Hedge Fund, Private Equity, and Venture Capital. It has around 100 employees and the assets under management are worth USD 95 billion as of October 2021.
Some of the big names in its investment list are Alibaba, Facebook, Quora, Spotify, Linkedln, SoftBank Group, Root Insurance, Credit Karma, Byju’s, Block, Nextdoor, Databricks, The Viral Fever, and many others.
About Alpha Wave Global
Founded in the year 2011 and with headquarters in New York, United States, Alpha Wave Global is a diversified global, alternative asset manager and has its offices in New York, Miami, London, Abu Dhabi, Tel Aviv, and Bengaluru. The mission of the venture capitalist is to create uncorrelated return streams in the public market which will be focused on special situations. It aims to be different and uncorrelated.
In the private market, the aim of Alpha Wave Global is to make an investment in best-in-class venture and growth-stage companies and endeavor to be helpful, long-term partners to the founders.
The startup is doing something very innovative. We wish the startup a bit of good luck and a shining and amazing future ahead.
Edited and published by Ashlyn