Revitalising Procurement: A Strategic Acquisition Analysis for Moglix

Lights, camera, action!

Hi, I’m Dheeraj Girase. I worked with Moglix from 2020 to 2023, where I got to know the product inside out. Now, a couple of years later, I’m back—this time, with fresh eyes on an acquisition project.

Startups move fast, and I’m excited to dive into the changes, connect with customers, and craft a quality acquisition report. This isn’t just business; it’s a mission to make a real impact.

The stage is set, and I’m ready to roll. 

What is Moglix ????

Moglix is like the "Rajinikanth of B2B e-commerce," quietly revolutionising how industries procure and manage supplies. Born in the heart of India's startup ecosystem, Moglix plays the lead role in a blockbuster transformation, bringing transparency, efficiency, and innovation to the traditionally opaque world of procurement.

Elevator Pitch ......

Tired of B2B supply chain inefficiencies?

Moglix goes beyond connecting you with suppliers—it manages your entire procurement process.

With expert data management and significant cost savings, Moglix transforms your supply chain into a model of efficiency and growth.

​Details about Moglix ..

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Basic Features and Functionalities :

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Life without Moglix .....

Getting close to customers to understand Moglix better .....

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The Learnings from Survey & Customer feedback analysis :​

What Is the Need That Customers Have with Moglix?

Customers are with Moglix because it offers a simpler and more efficient way to manage B2B procurement. Traditionally, companies struggle with complex processes like gathering data, negotiating with multiple vendors, and handling delays.

Moglix meets these needs through its user-friendly e-commerce platform for industrial supplies. Additionally, the business.moglix vertical provides a deeper understanding of customer needs, using technology to develop customised, cost-saving solutions. This approach streamlines procurement, making it faster, more reliable, and more strategic.

What customers say :

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​Understanding the User Journey( Both Verticals )

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Who are the Decision maker , Influencers , Blockers & end users ?

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​Understanding Core Value Proposition

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What is Moglix really in the business of?

" Moglix streamlines B2B procurement "

Moglix simplifies B2B procurement, primarily focusing on Maintenance, Repair, and Operations (MRO) items. It provides a one-stop solution for streamlining supply chain management, vendor consolidation, and ensuring cost savings through automation and real-time visibility.

Key Features & Benefits:

• Automated Workflows: Reduces manual errors, saves time, boosts productivity.
• Bulk Buying Options: Streamlined bulk purchase with easy uploading and fulfilment.
• ARC Support: Cost-saving strategies based on data analysis, with inventory management.
• Custom Catalog & Dashboard: Personalised catalog for companies, maintaining pricing consistency across multiple plants.
• Supplier Collaboration: Stronger supplier relationships through consolidation, reducing vendor base by up to 80%.

Understanding our ICP

If Moglix is the Rajinikanth of B2B e-commerce, the saviour of the procurement world, then how can we forget the "Janta" ? Just like the people of Mahishmati look to Baahubali for hope and strength, our customers are the backbone of this journey.

To truly understand how our customer thinks and takes decision, I conducted a series of surveys and phone calls with 10 procurement managers, 3 chief procurement officers, and 2 B2B users of our app.

B2B Table :

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ICP Findings ......

• The user said they are happy with the range of products and categories, describing Moglix as a one-stop solution that offers secure payment methods and a wide selection of brands at competitive prices.
• The user mentioned that sometimes they find products on Moglix that are not available elsewhere.
• The user is aware of Moglix.com but wasn't aware of business.moglix.com, which helps with Annual Rate Contracts, vendor consolidation, and tech assistance.
• The user said that the wrong material was delivered initially, but the issue was handled well later.

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Now , let's see what key competitors are doing ...

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Market Insights for Online Procurement ( Industrial Goods )

Lets understand the Market for Moglix ...

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Now lets look at Moglix revenue for last 4 years & try to calculate Market share....

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While this number looks low , it makes me analyse online procurement v/s offline procurement since Indian B2B online procurement space is still evolving

Online vs. Offline Procurement :

Pre-COVID, online B2B procurement in India was 10-15%.

Post-pandemic, it rose to 20-30%, and in 2024, it's estimated at 30-40%.

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Moglix’s revised Market Share :

In the estimated ₹3,44,400 crore online procurement market for 2024, Moglix’s ₹6,600 crore revenue means a market share of about ~2%.

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Importance :

Focusing on the online segment provides a clearer view of Moglix’s digital impact and growth potential.

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Opportunity :

The rise in digital procurement post-COVID is a significant chance for Moglix, but they must continue to innovate and expand their online presence.

So with that its clear , there is an absolute opportunity to grow . Before we jump on to make the strategy lets check where Moglix stands in the online space

Now lets look at Moglix’s Digital Presence :

Now Lets Compare Moglix V/S Competition in Online Space :

​Observations

• Moglix has strong domain authority and high engagement but faces challenges with high bounce rates and limited international traffic.
• Industry Buying shows effective brand-building with higher branded traffic but has lower domain authority and organic traffic.
• IndiaMART leads in domain authority, organic traffic, and user engagement, with a broader geographic reach and higher paid traffic investment.

Opportunities for Moglix

• Expand international presence to reduce reliance on Indian traffic.
• Enhance brand-building strategies to increase branded traffic.
• Optimise paid advertising spend to improve ROI.
• Improve site relevance and user experience to lower bounce rates.

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Designing Acquisition Channel for Moglix

Moglix is in the mature scaling stage, so it’s crucial to focus on optimising and expanding the acquisition channels that are already effective.

I am prioritising Content Loops and Paid Ads due to their proven success in generating high volumes of traffic and their potential for further growth.

The reason for not focusing on strategies like Organic Search, Product Integrations, and Referrals at this time, is that they are less suited to our current phase and goals.

Before jumping on to Paid ads lets have a look at CAC , LTV & CAC to LTV ratio :

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CAC Calculation :

Hypothesis :

• Historical Revenue and Expense Data: Given that Moglix has had consistent revenue growth but also faced negative P&L margins, I estimated that a significant portion of the revenue is reinvested into marketing and sales efforts.
• Market and Industry Benchmarks: For B2B platforms, marketing budgets can range from 5% to 15% of total revenue.
  
  Referring to Data :
• Moglix's Total Revenue (2024): ₹6,600 crore ( estimated )
• Estimated Marketing Spend Range: Marketing Spend=7.5%×₹6,600 crore=₹495 crore

Number of New Customers Acquired Monthly :

Hypothesis:

• Conversion Rates and Traffic: Based on the website traffic of approximately 2.8 million visits annually and typical e-commerce conversion rates (which can range from 0.5% to 2%), I estimated the monthly number of new customers.

Assumptions:

Assuming a conversion rate of about 1.5%, which is reasonable for B2B e-commerce, the number of new customers was calculated from the total annual traffic.

Now the Calculations !!!​

Total Marketing and Sales Spend:

Value:

Total Paid Traffic Cost: $76.3K

• Paid Traffic Visits: 34.4K
• Exchange Rate: ₹80/USD

Calculation:

1. Convert Paid Traffic Cost to INR:
   
   Total Paid Traffic Cost (INR)=76,300 USD×80 = ₹61,04,000
   

Total New Customers Acquired Annually:​

Monthly Traffic: 2,33,333 , Conversion Rate: 1.5% (0.015)

Estimated New Customers: 2,33,333 × 0.015 = 3,440

Customer Acquisition Cost (CAC)​

CAC = 61,04,000 / 3440

CAC = ₹17,750

Average Revenue Per User (ARPU)

Total Revenue from B2B Online Portal : ₹240 crore
Total Active Customers: 18,000

ARPU = ₹240,00,00,000 / 18,000

ARPU= ₹1,33,333

Lifetime Value (LTV)

ARPU: ₹1,33,333
Gross Margin: 25% (0.25)
Customer Lifetime: 4 years

LTV = ARPU×Gross Margin×Customer Lifetime

LTV = ₹1,33,333 × 0.25 × 4 = ₹1,33,333

​CAC to LTV Ratio

CAC: ₹16,667
LTV: ₹1,33,333

CAC to LTV Ratio = ₹16,667 / ₹1,33,333=0.125 = 12.5%

Summary

• ARPU: ₹1,33,333
• LTV: ₹1,33,333
• CAC: ₹16,667
• CAC to LTV Ratio: 12.5%

Acquisition Strategy Analysis / selection :

Selected Strategies​

1. Content Loop :
   
   Why: Moglix has strong organic traffic (1.9M visits) and high user engagement (6 min avg. visit, 3.37 pages per visit). Leveraging content loops can amplify this engagement and drive additional traffic and user acquisition.
   
   Data Backing:
2. • High Engagement: Long average visit duration and multiple page views indicate users are interested in content, making it ideal for creating shareable, engaging content.
     
3. Paid Advertising
   
   Why: Significant investment in paid advertising ($76.3K) with a current CAC of ₹16,667. Optimising this channel can reduce CAC and improve acquisition efficiency.
   
   Data Backing:
4. • High Spend: Substantial budget on paid ads justifies efforts to optimise targeting and creatives.
   • Branded Traffic: 26% share of branded traffic indicates the effectiveness of ads in driving high-quality traffic.

These strategies focus on leveraging existing strengths and optimising high-impact channels for better customer acquisition.

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Implementing the Strategy :

Digital Channels

1. Google Ads: Capture high intent traffic through search queries related to B2B procurement and e-commerce.
2. LinkedIn Ads: Target professionals and decision-makers in relevant industries.
3. Facebook Ads: Reach a broader audience with targeted demographics and interests.

Audience Selection & Creative Strategy

• Audience Selection:
• • Google Ads: Keywords related to B2B procurement, supply chain management, and e-commerce solutions.
  • LinkedIn Ads: Job titles such as Procurement Managers, Supply Chain Directors, and eCommerce Heads. Target industries such as manufacturing, retail, and logistics.
  • Facebook Ads: Demographics and interests related to business operations, procurement, and e-commerce.

Ad Campaigns

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Content Loop :

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Closing Notes

And there you have it—the dynamic strategy that will propel Moglix to new heights, just like how Rajnikanth gains followers and saves more lives .

Our Content Loop and Paid Advertising strategies are set to drive a wave of growth, turning traffic into loyal customers and transforming leads into substantial revenue.

With a well-rounded approach, we’re not just optimising acquisition but setting the stage for Moglix to dominate the market.

Buckle up for a journey of remarkable growth and success!

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