SUMMARY
- Moglix invests $50M in Credlix to expand supply chain financing for SMEs in the US & Mexico.
- Credlix offers collateral-free financing to SMEs in the electronics, automotive, textiles, aerospace, and apparel sectors.
- Moglix’s FY23 operating revenue rose 83%, despite a 12% net loss increase to $23.5M.
To support its growth into the US and Mexico markets, Moglix has invested $50 million (₹417.5 Crore) in its supply chain financing division Credlix. The primary objective of Credlix in the new market is to offer small and medium-sized businesses in the manufacturing sector which includes sectors like electronics, automotive, textiles and apparel, aerospace components, and textiles “collateral-free financing solutions.”
Founder and CEO of Moglix, Rahul Garg stated, “Just as we’ve supported manufacturing and infrastructure businesses in India, Credlix’s expansion into Mexico will enable SMEs to overcome financial challenges and capitalize on opportunities in a dynamic global trading environment.”
Founded in the year 2021, Moglix offers early payment programs, vendor finance, supply chain financing, invoice discounting, and purchase order financing as working capital solutions for businesses and exporters. It offers credits of up to $3 million or 90% of the consignment value, whichever is less, and levies interest rates of 7–11% per year or 0.6-0.9% per month. It says that it currently serves 16,000 SMEs and 700 businesses in South East Asia and India.
The parent company of Credlix, Moglix, was established in 2015 and offers a variety of products for sale online, including motors, electrical supplies, power tools, and medical equipment. After raising $120 million in its Series E fundraising round, which was led by Alpha Wave Capital (Falcon Edge Capital) and Harvard Management Company (HMC), the startup joined the unicorn club in 2021.
In the fiscal year 2022–2023, its net loss rose by 12% to $23.5 million (₹196 Crore) from $21 million (₹175.3 Crore) in FY22. Operating revenue increased 83% from $306.9 million (₹2,554.6 crore) in FY22 to $560.4 million (₹4,664.7 crore).
