B2B industrial goods marketplace Moglix has bought back shares worth $10 million from its founder and CEO Rahul Garg. The development comes four months after the company’s Series F round in which it had scooped up $250 million at a valuation of $2.6 billion.
Moglix will buy back 2,235 ordinary class shares from Garg for a consideration of $10 million and cancel them, the company’s regulatory filings in Singapore show. The company will fund the buyback from existing capital.
Moglix had entered the unicorn club following a $120 million round in May 2021. The company’s existing investors—Tiger Global and Alpha Wave Global led the last round with participation from Hong Kong-based Ward Ferry. Entrackr had exclusively reported about Moglix’s upcoming financing round on January 10.
Till date, the company has raised a little over $470 million.
Moglix works with manufacturing and infrastructure companies to smoothen their supply chain right from procurement to distribution. Besides India, Moglix has presence in overseas markets including Singapore, the UK and UAE.
Following its Series E and F rounds, Moglix had offered partial exits to early backers and bought back employee stock options or ESOPs. The company also made a strategic investment in EV manufacturing startup Euler Motors. Entrackr exclusively reported this investment on April 17.
During the Series F round, Moglix provided a stupendous return to its seed-stage investors through secondary transactions. According to Fintrackr’s calculations, Moglix’s investor Seedplus achieved a 64X return in the secondary transaction in the Series F round whereas SPKK Holdings got the highest return as it scored an average return of 83X. Rocketship.vc and Rahul Mehta bagged 18.6X and 18X returns respectively. Mehta is a partner at DST Global.
In August 2021, Moglix’s early investors Accel, IFC and Tanglin Venture Partners pocketed $15 million in a secondary deal. Tanglin was the largest beneficiary in the secondary transaction by offloading shares worth $10 million to Alphawave. Entrackr was the first to provide the breakdown of both the secondary deals.
The company also announced that it completed an ESOP buyback programme worth $3 million in July last year. In the same month, it acquired Vendaxo, an e-commerce platform for buying and selling used machinery.
