Moglix acquires Khatema Fibres for 80 Cr

Business-to-business marketplace unicorn Moglix has bought eco-friendly paper products manufacturer Khatema Fibres for Rs 80 crore (nearly $9.4 Mn).

According to Moglix, this deal aims to boost its sustainable packaging portfolio and strengthen its leadership in the industrial procurement segment. It will enhance local infrastructure and open new market opportunities for farmers and artisans, fostering community growth and prosperity. This acquisition aligns with Moglix’s recent launch of Next Day Delivery in over 12 cities, with plans to expand to 40 cities.

Moglix also plans to expand into five new manufacturing categories as part of its broader business strategy, integrate and diversify its offerings, reduce lead times, and ensure efficient delivery, it said in a press release.

Established in 1990, Khatema Fibres specialized in sustainable paper manufacturing with an annual capacity of 50,000 metric tons. The company offers a range of eco-friendly products, including speciality high-strength kraft paper, interleaving paper, machine-glazed and machine-finished papers, various tissue options, sublimation paper, virgin test liners, and food-grade packaging solutions.

Launched in 2015 by Rahul Garg, Moglix sells electrical supplies, power tools, motors, medical supplies, among others, through its online platform. The company had raised $120 million in its Series E round back in 2021, co-led by Falcon Edge Capital and Harvard Management Company (HMC), along with participation from Tiger Global, Sequoia Capital India, and Venture Highway. The company has invested $50 million in its supply chain financing arm Credlix to expand into the US and Mexico markets.