Decoding Moglix’s $250 Mn Series F round and secondary deals

Moglix recently concluded a $250 million round at a valuation of $2.6 billion. What stood out was the company's claim that its seed-stage investors got 80X returns through secondary transactions. It however didn’t divulge any further details. 

Fintrackr has decoded the entire Series F round including secondary and buybacks through its regulatory filings filed in Singapore.

Moglix has raised $170 million in primary capital in which Alpha Wave, Tiger Global and Ward Ferry Management have invested $65, $55 and $50 million respectively, filings show. Tiger and Alpha Wave also bought $79 million worth shares from angels and the early backers (VCs) via secondary deals.

Tiger has bought shares valued at $33 million from Singapore-based fund Seedplus, $8.27 million worth from Rocketship.vc ($6.2 Mn) and SPKK Holdings ($2.07 Mn). The US-based investment heavyweight also purchased a  $3.3 million worth stake from Rahul Mehta. 

Mehta is a partner at VC and PE firm DST Global.

According to Fintrackr’s calculations, Seedplus has achieved a 64X return in the secondary transaction. SPKK Holdings got the highest return as it scored an average return of 83X. Rocketship and Mehta have bagged 18.6X and 18X returns respectively.

Alpha Wave has purchased shares valued at $25 million from Accel and $3.4 million from MFP. It also bought $6 million worth shares from Shailesh Rao. Rao was a former partner at TPG Global and currently is an advisor and investor in Venture Highway and BigSpring.

Accel got an average return of 25.5X whereas MFP has reaped 23.2X return on the invested amount. It’s worth noting that MPF got a full exit from Moglix whereas all other investors participating in the secondary have retained some share yet, as per Fintrackr’s calculations.

Rao has earned a 25.2X return during the secondary transaction.

Apart from these primary and secondary transactions, the Singapore-headquartered company also bought back employee stock options (ESOPs) worth $18 million.

Moglix works with manufacturing and infrastructure companies to smoothen their supply chain right from procurement to distribution. It claims 16,000 suppliers on its platform providing solutions to more than 500,000 SMEs and over 1000 large manufacturers across India and the UAE. The company has raised around $470 million to date.

With a 15.4% and 13.3% stake respectively, Tiger and Accel are the biggest stakeholders in Moglix. Alpha Wave owns 12.5% whereas founder Rahul Garg’s holding has been diluted to 12.1%. Jungle ventures and Venture Highway have 7.9% and 6.7% stake respectively. 

Sequoia holds 6.4% and the company’s ESOP pool consists of 6.2% at the moment. To decode the complete cap table, please refer to the pie chart.

Among others, the company competes with three more unicorns: OfBusiness, Infra.Market and Zetwerk in its commerce business. With this raise, Moglix became the third most valued company among its competitors. OfBusiness is currently valued at around $5 billion while Zetwerk recently concluded a round at a valuation of $2.7 billion. 

Infra.Market is in talks to raise a fresh round at over $4 billion. Besides Zetwerk, Tiger Global is a common investor in all three unicorns.