Moglix, a Noida-based startup, has raised $12 million in a Series B funding round new investors International Finance Corporation (IFC, a member of the World Bank Group) and Rocketship.vc. along with existing investors Accel Partners, Jungle Ventures, Shailesh Rao and Venture Highway. It also counts Ratan Tata as one of its investors. The company is expected to use the fresh capital to expand its presence in the country significantly. Founded in 2015, the startup started as an online store for tools and construction supplies, but now it’s venturing into enterprise software with the launch of GreenGST to help Indian manufacturers become compliant with the country’s new tax codes.
India’s recently implemented Goods and Services Tax (GST) means that manufacturers will have to digitize in a hurry, because they are now required to file indirect taxes (which include service and sales tax) online. Launched last month, GreenGST helps manufacturers keep track of deadlines and make sure all the vendors in their supply chain are also compliant with GST. Rahul Garg, founder and CEO of Moglix, said that “Even though the industry is worth $300 billion, just two to three percent of manufacturers currently use software to manage their supply chains, making it one of the least digitized industries in India”.