Moglix Buys Paper Products Maker Khatema Fibres For INR 80 Cr

B2B marketplace unicorn Moglix has bought Uttarakhand-based eco friendly paper products manufacturer Khatema Fibres for INR 80 Cr ($9.4 Mn).

With this deal, Moglix seeks to boost its sustainable packaging portfolio and strengthen its leadership in the industrial procurement segment.

The company also plans to expand into five new manufacturing categories as part of its broader business strategy, it said in a statement.

Through its integration with Khatema Fibres, Moglix will enhance local infrastructure and open new market opportunities for farmers and artisans, fostering community growth and prosperity.

“This acquisition not only expands our manufacturing footprint but enables us to deliver even greater value as we meet the dynamic demands of the market,” said Rahul Garg, founder and CEO of Moglix.

This acquisition aligns with Moglix’s recent launch of Next Day Delivery in over 12 cities, with plans to expand to 40 cities. 

Founded in 1990 Khatema Fibres is known for specialising in sustainable paper manufacturing with an annual capacity of 50,000 metric tons. The company offers a range of eco-friendly products, including speciality high-strength kraft paper, interleaving paper, machine-glazed and machine-finished papers, various tissue options, sublimation paper, virgin test liners, and food-grade packaging solution

By expanding its presence in Uttarakhand, Moglix aims to contribute to the state’s industrial growth by creating job opportunities, promoting skill development, and strengthening local manufacturing capabilities. 

Additionally, with this acquisition, Moglix plans to further integrate and diversify its offerings, reduce lead times, and ensure efficient delivery.

Founded in 2015 by Rahul Garg Moglix sells electrical supplies, power tools, motors, medical supplies, among others, through its online platform. The startup entered the unicorn club in 2021 when it raised $120 Mn in its Series E. 

The Series E funding round was led by Falcon Edge Capital and Harvard Management Company (HMC), with participation from Tiger Global, Sequoia Capital India and Venture Highway. 

The development comes months after Moglix invested $50 Mn (INR 417.5 Cr) in its supply chain financing arm Credlix to fuel its expansion into the US and Mexico markets. 

Moglix is also looking to shift its domicile to India as part of its plans for a public listing. With the domicile shift, Garg recently said it will look to make its public market debut in the next two years. 

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