B2B e-commerce platform Moglix has acquired packaging solutions provider Khatema Fibres for Rs800m ($10.6m) to expand its product range and accelerate business growth.

The deal is expected to strengthen Moglix’s market presence and enhance operational efficiency. It also aligns with the company's recent initiative of launching Next Day Delivery across more than 12 cities, with plans to extend this service to 40 cities, addressing the dynamic requirements of the B2B sector.

Khatema Fibres' eco-friendly products are expected to enhance Moglix's sustainability focus, meeting growing demand in industrial and packaging markets.

Established in 1990, Khatema Fibres is recognised for its sustainable paper manufacturing. With a production capacity of 50,000tpa, the company's portfolio includes high-strength kraft paper, interleaving paper, and food-grade packaging solutions.

Moglix aims to scale the Khatema plant's capacity to 75,000mt, reinforcing its dedication to growth within the manufacturing industry.

Founded in 2015, Moglix operates an online platform that distributes a variety of products such as electrical supplies, power tools, and medical supplies.

Moglix founder and CEO Rahul Garg said: “This acquisition not only expands our manufacturing footprint but enables us to deliver greater value as we meet the dynamic demands of the market." 

The company's Series E funding round in 2021 raised $120m, with significant contributions from Falcon Edge Capital and Harvard Management Company. Tiger Global, Sequoia Capital India, and Venture Highway also participated in the funding round.

Additionally, Moglix has invested $50m in its supply chain financing unit, Credlix, to facilitate expansion into the North American markets, specifically the US and Mexico.