Moglix adopts supply-chain hedging as India eyes chip self-reliance

B2B platform Moglix is securing global suppliers for critical components as it aligns with India's expanding semiconductor and electronics ambitions

B2B e-commerce platform Moglix is implementing geographic hedging across its supply chains to mitigate risks from trade tensions and tariff disruptions, as the company positions itself to capitalise on India's push toward semiconductor self-reliance.

 

The $2.6 billion company, backed by Tiger Global, Peak XV and Accel, is ensuring alternative suppliers across multiple countries for critical components used in automotive, industrial and solar applications.

 

"We are making sure that we have country hedging. So, if we have one chip, let's say of automotive, which comes from country A, we want to also make sure that we have two more alternatives coming from different countries so that there is a bit of a resilience with respect to the geopolitics aspect," said Rahul Garg, founder and chief executive of Moglix, in a video interview. 

The strategy comes as companies navigate supply-chain disruptions that have intensified since the pandemic. Garg said recent tariff measures represent "temporal distortion rather than disruption" as companies await clarity on long-term trade policies. 

"I think you start to have a strategy in place when you know that this is what the long term will look like. I don't think people have absorbed on both sides that this is a long term phenomena," he said.

 

Electronics production expansion and domestic chip push

 

Moglix recently added over 50 suppliers to its platform, expanding access to high-quality industrial and electronic components as India's electronics production is expected to grow from $130 billion in 2025 to $500 billion by 2030.

 

As the industry moves toward greater local assembly, the need for reliable component suppliers and strategic sourcing partners is becoming increasingly critical.

 

"The consumption of electronic components is not going to slow down in the country," Garg said.

 

The company also expects to partner with domestic semiconductor manufacturers as India's chip production scales.

 

"As India builds more semiconductor or chip manufacturing, we would expect all of them to come on board on Moglix because we offer them almost unprecedented access in terms of customers and being able to drive sales, which the newer companies in India may not have built," he said.

 

Domestic chip production remains in early stages, with test chips released but full-scale production expected over the next two to three years from the first wave of government and private investments.

 

Manufacturing expansion to support quality sourcing

 

Beyond its platform business, Moglix operates four manufacturing plants covering packaging, fabrication, electrical products and bitumen—a two-year-old initiative that signals expansion beyond pure marketplace operations. The company plans to add manufacturing capacity where existing supply quality fails to meet platform standards.

 

"We will look at each of those opportunities and create manufacturing where required," Garg said, adding that the company will manufacture products "where we think there is a limited supply which is of the quality that we want on a platform."

 

Garg, who spent a decade in the semiconductor industry before founding Moglix, said the company differentiates itself from traditional distributors through technical systems expertise.

 

"We are not just another distributor on the block, but we are actually both distribution supply chain as well as systems capabilities within our company, which we can offer to the customers," he said.

 

Revenue, profitability and listing timeline

 

Founded in 2015, Moglix's total revenue for the financial year ending in March 2025 was $692.8 million, a 15 per cent increase from $601 million in FY24. The company is approaching profitability but faces an extended timeline for a potential initial public offering due to its Singapore holding structure.

 

"We are continuously improving, we are growing, we are improving our profitability, we are very close to it," Garg said. The company has not yet initiated its domicile flip to India, a prerequisite for listing on Indian exchanges.

 

Garg positioned the company's development timeline alongside India's B2B e-commerce evolution.

 

"While consumer companies started to get built in 2007, 2008, we have really started to build since GST 2017, so the true B2B sort of unlock is at least by 2030 to 2035, so that's the horizon that we continue to build the company," he said.

 

GST impact expected to be indirect, not volume-driven

 

The recent goods and services tax reforms are expected to have secondary rather than direct effects on Moglix's business. Unlike consumer categories, industrial components represent utility purchases unlikely to see volume increases from price reductions alone.

 

"The products that we deal with are mostly utility purchases, they are not like a fashion product that because the price is cheaper you will buy a double of it," Garg said.

 

However, he expects indirect benefits if GST-driven automotive sales growth increases manufacturing activity.

 

"If automotive sales increase because of GST reduction, then yes the manufacturing will happen more and then people will buy more products from us. So there is a secondary effect," he said.