Inside Moglix’s $120 Mn Series E round and its unicorn claim

B2B industrial goods marketplace Moglix has raised $120 million in its Series E funding round led by Falcon Edge Capital and Harvard Management Company. In a press statement, the company claimed to have become a unicorn with the fresh proceeds, however, Fintrackr’s estimates show that it has missed the $1 billion valuation mark with a decent margin.

Regulatory filings in Singapore show that on May 6, Moglix allotted 84,804 preference shares and 2,494 ordinary shares at an issue price of $1202.74 per share. On May 4 and two days before this allotment, the company had allotted 43,151 preference shares to Sequoia at an issue price of $370.79 per share.

While we have seen growth stage startups provide an opportunity to its early backers pick up some shares at a lower valuation before a large round, Sequoia has invested $16 million at an issue price of $370.74 per share, essentially investing two-thirds of its total investment in the Series E round at a discount of 69%.

And it is rare to see such a hefty discount before a mega-round like this one.

Filings show that Falcon Edge has invested $63 million in the latest round followed by Sequoia, Tiger Global and Venture Highway with $21 million, $18 million and $10 million infusion respectively. The remaining amount came from Harvard Management Company.

According to Fintrackr’s estimates, Moglix has reached a post-money valuation of $820-850 million, much short of the magic number to make it a unicorn. 

We sent detailed queries to Moglix regarding the difference in the valuation figures and the company sent us the press release in its response and declined to comment further. Sequoia also declined to comment on the story.

The Singapore-incorporated company was valued at around $300 million during its last funding round of $60 million in July 2019. This latest round of funding takes the total funds raised by Moglix to $220 million.

Following the investment round, Rahul Garg has 14.05% stake in the company. Lead investors Falcon Edge and Harvard Management Company have acquired around 7.69% and 1.1% stake in the company respectively whereas existing backers Tiger Global, Venture Highway and Sequoia Capital India  control around  12.5%, 7.75% and 6.94% holding in the company.

Floated by Rahul Garg, Moglix is a B2B commerce platform in the industrial & MRO procurement space with a full-stack service covering procurement, packaging, supply chain financing and integrated software.

The six-year-old company caters to both large and SME players in the manufacturing industry and claims to have more than 150,000 clients in addition to over 250 enterprises and corporations. According to the company, it has 3,000 manufacturing plants across India, Singapore, the UK and the UAE.

Update: We have included the shareholding structure of Moglix in the story.