Moglix Infuses $50 Mn In Its Financing Arm Credlix

SUMMARY

In the new market, Credlix will focus on providing “collateral-free financing solutions” to small and medium enterprises (SMEs) in the manufacturing sector

Launched in 2021, Credlix provides working capital solutions for enterprises and exporters

Credlix claims to serve 700 enterprises and 16,000 SMEs in India and South East Asia

B2B marketplace unicorn Moglix has invested $50 Mn (INR 417.5 Cr) in its supply chain financing arm Credlix to fuel its expansion into the US and Mexico markets.

In the new market, Credlix will focus on providing “collateral-free financing solutions” to small and medium enterprises (SMEs) in the manufacturing sector, including industries like automotive, textiles and apparel, aerospace components, electronics.

“Just as we’ve supported manufacturing and infrastructure businesses in India, Credlix’s expansion into Mexico will enable SMEs to overcome financial challenges and capitalise on opportunities in a dynamic global trading environment,” Moglix founder and CEO Rahul Garg said.

Moglix launched Credlix in 2021. It provides working capital solutions for enterprises and exporters, including early-payment programmes, vendor financing, supply chain financing, invoice discounting and purchase order financing.

The company provides up to $3 Mn in credit or 90% of the consignment value (whichever is lower) and charges annual interest of 7-11% or monthly interest of 0.6-0.9%. As of now, it claims to serve 700 enterprises and 16,000 SMEs in India and South East Asia.

Meanwhile, Credlix’s parent Moglix, founded in 2015, 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 funding round led by Falcon Edge Capital and Harvard Management Company (HMC).

With an eye on public listing, Moglix is currently looking to shift its domicile to India. With the domicile shift, Garg recently said it will look to make its public market debut in the next two years.

On the financial front, its net loss increased 12% to $23.5 Mn (INR 196 Cr) in the financial year 2022-23 (FY23) from $21 Mn (INR 175.3 Cr) in FY22. Operating revenue rose 83% to $560.4 Mn (INR 4,664.7 Cr) from $306.9 Mn (INR 2,554.6 Cr) in FY22.