Moglix CFO: The role of a CFO goes beyond finance when it comes to startups
Moglix CFO: The role of a CFO goes beyond finance when it comes to startups
Rahul Goel, Vice President- Finance, talks about the challenges and success factors of new-age CFOs. Having worked with both startups and MNC’s, Rahul believes that the role of a CFO goes beyond finance when it comes to startups. He dissects various challenges that CFOs face in the startup world especially in the tech space, followed by the successes that lead around for CFOs.
A finance professional for over two decades, the Moglix CFO believes that two major factors that are often ignored by most financial heads at companies are growth and governance which play an important role in the journey. He stated that Indian companies have yet to understand the business model and efficiency of tech startups so that they can be evaluated correctly.
Given that tech startups ought to have cross-functional leaders, the biggest challenge for a CFO is balancing the speed and agility of the finance operations with the other parts of the business from product to marketing. “In the early stage of that product, the resources might be limited but the speed at which the company wants to run might be very fast,” Rahul added, highlighting the need for CFOs to learn about other domains to react in a quick manner.
One of the most crucial tasks for a CFO is fundraising. A new-age CFO needs to assume responsibility for the complete fundraising cycle — from the timing of the fundraise to creating a healthy financial picture to meeting with advisors to identifying the right strategic partners and attracting the right set of investors.
Rahul states that it is crucial for any company to hire a CFO from the start itself in order to be successful. One needs to be more agile, fast, and innovative in order to reach the business requirements and when it comes to tech startups, CFOs need to be dynamic. He explains how important it is in a tech startup, such as Moglix, to focus on key performance indicators.
Read MoreMoglix launches digital supply chain financing platform Credlix
Moglix launches digital supply chain financing platform Credlix
Moglix launches digital supply chain financing platform Credlix with the aim to provide quick collateral-free working capital solutions for its 15000+ suppliers and make the supply chain ecosystem future-proof from disruptions.
Credlix aims to make it easier for the suppliers to get just-in-time payments through its technology-driven supply chain financing system. Suppliers will be able to request early payments from enterprise buyers at affordable discount rates to keep their supply chain up and running even during times of disruption.
Rahul Garg, Founder & CEO, Moglix said in a statement,
MSMEs in India account for 11 crore jobs and 29% of the country’s GDP. Unclogging the cash flow through the supply chain will be integral to fostering winning partnerships between MSME suppliers and large enterprise buyers and realizing the Government of India’s vision for Aatmanirbhar Bharat.
Credlix is on track to provide invoice discounting of Rs 1000 crore over the next 12 months and is aiming to touch Rs 10,000 crore discounting value over the next three years by scaling up to include more banks, suppliers, and geographies.
Read MoreIndia`s Covid Vaccination Drive: A Road To Self-Reliance
India`s Covid Vaccination Drive: A Road To Self-Reliance
Rahul Garg, CEO & Founder, discusses how India’s covid vaccination drive will lead its journey to self-reliance. As the vaccine rollout in India has crossed one million doses within a week of inception. India accounts for 60% of the world’s manufactured vaccine output and our global partners are looking up to us to help them out of the crisis.
Naturally, this has become a crucial moment for India, as our capability to drive the vaccination manufacturing and supplies for our global partners will determine our focus and determination towards becoming self-reliant.
India’s COVID19 vaccine supply chain design has to be based on optimizing multiple objectives of cost, quality, and delivery. Collaboration among the stakeholders namely pharmaceuticals companies, logistics services providers, warehousing companies, and government agencies is the key to achieving this.
Rahul also says that this mission is guaranteed to be a success with all the stakeholders enrolled in a compact and connected supply chain platform to bring visibility to the order to delivery processes and track each stage of the supply chain journey.
Read MoreThe solution is to integrate the individual supply chain functions of every stakeholder into a gross objective function of ensuring COVID19 vaccine for a maximum number of people at minimum costs.
Tech Startups Innovations Will Enable Growth For Manufacturers In 2021
Tech Startups Innovations Will Enable Growth For Manufacturers In 2021
Rahul Garg, CEO & Founder, elaborates how innovations by tech startups will enable growth for manufacturers in 2021. He takes a walk down last year’s memory lane, connecting it to our action-plan for 2021 and beyond. From accepting the need
Tech startups will have opportunities to add value to creating a National Supply Chain Network that will bring all stakeholders on the same platform through digital connectivity. Digital connectivity will be critical to building agility, speed, and scale capabilities as Indian manufacturing enterprises look to get a more significant share of the global value chain in manufacturing.
Rahul also says that we need to segregate the supply chain ecosystem into a sum of parts that can be stitched together on-demand through combinatorial innovation to pivot with agility towards goods essential to creating jobs and protecting livelihoods. Solutions driven by scalable technologies like cloud computing, artificial intelligence, and machine learning can make this happen.
The aim is to have a vision today of becoming self-reliant and then to live this vision tomorrow. The key lies with Indian tech startups, they need to reverse the direction of innovation; focus on providing solutions to our local challenges first and then scaling up successful products across markets in the rest of the world.
Read MoreTech Startups Enabling the New Normal will Experience Viable Growth
Tech Startups Enabling the New Normal will Experience Viable Growth
Rahul Garg, CEO & Founder talks about how tech startups enabling the new normal will experience sustainable growth. Tech-integrated supply chains are on the rise more than ever due to the major set-back in 2020. T
Tech startups that have lived up to the promise of ensuring business continuity, workforce collaboration, and effective remote working for their enterprise customers have thrived.
He throws light on the growth that these startups have achieved supernormal growth during the pandemic. He also talks about how the pandemic has seen a surge in demand for technology-enabled solutions that allow enterprises to reduce their exposure to financial and health risks.
During the pandemic, enterprises have pivoted towards outcome-based digital transformation initiatives and have put outlay-based projects on the backburner.
Technologies that have experienced a dip in demand are data center systems, enterprise software, devices, ITeS, and communication services.
Tech startups offering business transformation solutions, business process re-engineering, and modernization of legacy applications and systems have been at the receiving end of reduced expenditure by enterprise customers.
Read MoreMoglix Listed as One of the Top 10 Indian Startups of 2020
Moglix Listed as One of the Top 10 Indian Startups of 2020
Moglix has been listed as one of the top 10 Indian Startups of 2020. As the year gave a hit to many startups, a few used this opportunity to create new possibilities.
The Ratan Tata-backed e-commerce B2B platform Moglix is also claimed as one of India’s next unicorns.
Moglix specializes in the procurement and supply chain across industries, such as Automotive, FMCG, Pharmaceuticals, Cement, and more. Moglix is backed by IFC, Accel Partners, Jungle Ventures, Venture Highway, SeedPlus, and Rocketship. It has been recognized for innovations by CIPS Asia Awards, Samurai Awards, Globee Awards, among others.
Read MoreBrand Distribution in 2021: Increasing Agility with Digital Channels
Brand Distribution in 2021: Increasing Agility with Digital Channels
The next major theme for Indian manufacturing in 2021 will be brand distribution. With the global supply chain experiencing a reset to the status quo; the structural transition of the Indian economy from being consumption-driven to being a manufacturing hub, there will be new opportunities for OEMs to leverage digital channels for brand distribution.
The market opportunities in the distribution of manufactured goods will impact both India’s domestic and global trade. B2B e-commerce platforms will enable new avenues for OEMs to penetrate new geographies and address challenges of sales overheads in remote locations and transparency in their value chain.
Read: My vision for Moglix is to change the face of industrial commerce
With the global manufacturing community searching for a new address, a new strategic group of economies in the Asia-Pacific will rise. The emerging economics collectively referred to as the Mighty Five, include MITI-V i.e., Malaysia, Indonesia, Thailand, India, and Vietnam. Policy initiatives, coupled with some of India’s long-standing strategic advantages, are likely to unlock new opportunities through digital channel management and brand distribution. These include India’s planned outlay of INR 2.3 trillion in engineering, a robust 5G optic fiber network, and the INR 27000 crore single-window e-logistics market.
The combined effect of faster digital and logistical connectivity will allow B2B e-commerce platforms, logistics services providers, and OEMs to collaborate for enhanced brand distribution across the country’s length and breadth.
Listen to Moglix Podcast on Now and Next in The Automobile Industry
OEMs will be keener to explore avenues of better transparency in their value chain and cost-efficient ways to make inroads into the remotest corners of India’s hinterlands. B2B e-commerce platforms with their cutting edge technology capabilities like sales analytics are well poised to serve OEMs in this regard. Furthermore, B2B e-commerce platforms will provide fully digital distribution capabilities that have already seen an uptick in demand due to the vulnerability of offline distribution channel management.
Lastly, B2B e-commerce platforms will allow OEMs to reduce their sales overheads and tap into regions that do not seem economically feasible due to costs of first-mile/last-mile logistics, warehousing, and inventory management. B2B e-commerce platforms with pan-India networks of warehouses, logistics operators, and tech-enabled workforce will emerge as sales specialists with hybrid-inside sales capabilities.
Mohit Gulyani is Senior Director- Strategic Partnerships at Moglix
To learn more about manufacturing and supply chain trends in 2021, download our ebook titled Road to Self-Reliant Manufacturing: Procurement and Supply Chain Insights for 2021 here.
Contract Management in SaaS: Accelerating Digital Transformation
Contract Management in SaaS: Accelerating Digital Transformation
2020 has seen a significant reset in how manufacturing enterprises enable contract management to keep the supply chain moving. At the heart of the global supply chain disruption in manufacturing and the change in OEM-supplier relationships’ status quo. In March, China had reported issuing 4,811 force majeure certificates that put manufacturing contracts worth USD 53. 79 billion at stake. This means that approximately 28% of the global manufacturing value chain that is locked in suboptimal direct procurement contracts need to be revisited.
2021 will see stakeholders in the manufacturing supply chain investing in digital solutions that enable superior compliance, traceability, mobility, and collaboration.
A large number of manufacturing enterprises will expect improvement in transparency in supplier relationships, innovation cycles, and multi-year contracts. This will put them on a learning curve for greater technology adoption.
Listen to our recent podcast on Decoding The Digital in Supply Chains
Trust building between OEMs and suppliers is the glue that holds the entire supply chain together. In 2021, OEMs will move away from transactional supplier relationships to strategic ones. The adoption of contract management SaaS is likely to be the first step towards achieving this end.
Manual, offline, and siloed contract management processes will give way to contract automation platforms. This will allow enterprises to increase asset efficiency and reduce time to market, manufacturing cycle time, and order backlogs.
Effective contract management is also integral to innovation and new product development. Rolling out innovative manufactured goods in the market is largely dependent on suppliers’ ability to churn out spares, parts, and components within delivery timelines stipulated in contracts.
Manufacturing enterprises will be keen to push through new product development initiatives in 2021. They will rely on contract automation to ensure improved transparency and better collaboration with suppliers. Consequently, contract automation will see a more significant influx of artificial intelligence, machine learning, and superior analytics.
Download Case Study: Learn how Moglix Automated Procurement Contract Creation Processes of a Large FMCG Company
In 2021, Manufacturing enterprises will approach contract management with extra caution and aim to make direct procurement contracts responsive to risks. Manufacturers will look out for events like the rollout of the vaccine for COVID19 BREXIT, the U.S trade policy, and the evolution of environment-sustainability-governance policies. These factors are likely to impact direct procurement contracts over time. Moreover, manufacturing enterprises will demand agile and cloud-native contract management solutions. This will allow them greater elbow room for recourse and risk mitigation for multi-year contracts.
Jigyasa Kishore is Global SaaS Leader at Moglix
To learn more about manufacturing and supply chain trends in 2021, download our ebook titled Road to Self-Reliant Manufacturing: Procurement and Supply Chain Insights for 2021 here.
Manufacturing-as-a-Service in 2021: Making Local Manufacturing Matter
Manufacturing-as-a-Service in 2021: Making Local Manufacturing Matter
One of the interesting themes in 2021 will be manufacturing-as-a-service. The government’s push for self-reliance through higher local capacity utilization will unlock new and better custom manufacturing opportunities. It will also provide a higher share of the gross manufactured value addition through integration with the global supply chain
The big draw for custom manufacturing will be the massive relocation of global manufacturers towards business environments that offer higher transparency, lesser command-economy regulatory frameworks, and cost advantages. Major sub-sectors that will witness global manufacturers’ relocation to India and fuel demand for custom manufacturing in 2021 and beyond. These sub-sectors include electronics, computer hardware, chemicals, metals, food & beverages, pharmaceuticals, and hi-tech engineering in defense. The government’s previous decision to raise the cap on FDI in defense manufacturing to 74% is likely to attract OEMs to greenfield projects from 2021 and onward.
Also Read: How a National Supply Chain Network Can Enable India to be Self-Reliant: Looking Beyond COVID19
‘In 2021, local Indian manufacturing will also get a significant cushion thanks to the government’s extension of the additional 2% export incentives to MSMEs till 31st March 2021.’
In all likelihood, the government will extend the window further and allow local Indian manufacturers to pass-through the cost advantage to their customers.
‘It will lead to enhanced global trade and demand for Made in India labels of custom manufacturing, such as casting, forging, welding, machining, heat treatment, fabrication and forming.’
Listen to Moglix Podcast on Now and Next in the Infrastructure Sector
On the supply side, schemes like the CLCS-TUS (that aim to subsidize technology penetration in Indian manufacturing) are likely to provide a formidable incentive to local Indian manufacturers to invest in plant, equipment, and machinery. Such technology integration will lead to an increase in their plant capacity and scale of operations, thereby impacting the unit economics of local Indian manufacturing and making it more competitive.
Bhavik Chheda is Head – Manufacturing As a Service at Moglix
To learn more about manufacturing and supply chain trends in 2021, download our ebook titled Road to Self-Reliant Manufacturing: Procurement and Supply Chain Insights for 2021 here.
B2B E-commerce in 2021: Accelerate Digital Business Transformation
B2B E-commerce in 2021: Accelerate Digital Business Transformation
After what enterprises had to endure in 2020 owing to the pandemic, they will welcome 2021 with a singular focus on answering one question: How can they unlock themselves from the challenges imposed by the disruption? These challenges include downtime in supplier clusters, inefficiencies in last-mile deliveries, and sub-optimal availability of labor. In a year when many enterprises with high exposure to offline and manual workflows had to bear the brunt of the pandemic, B2B e-commerce has held its ground. It has survived and thrived owing to a higher degree of digitalization.
Read: My vision for Moglix is to change the face of industrial commerce
Enterprises will look to keep the B2B supply chain moving against all odds in 2021. They will tap B2B e-commerce for answers to the challenges they faced in 2020. With the need to maintain social distancing and operate from protected environments with a reduced workforce, enterprises have explored a new world of possibilities in 2021.
The definition of e-commerce in India is far is fluid. In 2021, a larger number of enterprises will be willing to explore B2B e-commerce as a platform to procure and sell to other enterprise customers. In 2021, B2B e-commerce will become integral to the manufacturing supply chain and cover a vast spectrum of offerings, including packaging, dedicated infrastructure supplies, manufacturing-as-a-service, brand distribution, digital procurement, SaaS, MRO, and digital supply chain finance.
Download Case Study: How Moglix enabled agile MRO procurement for a large construction company
B2B e-commerce companies that use a marketplace model can integrate a large number of suppliers in the real economy with digital supply chain models. They stitch together analytics from apps-based commerce, content platforms, and devices to track demand with a hyperlocal strategy to optimize last-mile deliveries effectively.
In 2021, the digital connectivity across devices and physical assets of buyers, sellers, and logistics services providers will enable a transition from the internet of things (IoT) to the internet of behavior (IoB). Data will drive the mobility of goods and services that are integral to stakeholders in the real economy.
2021 will see B2B e-commerce companies using digital solutions to connect physical assets, enterprise buyers, logistics services providers, and local suppliers on a single platform. These platforms will create more opportunities for local suppliers to enable new market opportunities through domestic and global trade in 2021.
The Department for Promotion of Industry and Internal Trade (DPIIT)’s draft national e-commerce policy (NECP) focuses on export promotion through e-commerce. Once formalized, B2B e-commerce companies will create a digital supply chain ecosystem for local suppliers and large enterprises to find the next big market opportunity from a single window. It is likely to lead to 51% higher revenues for enterprises with B2B e-commerce participation than their offline counterparts.
The low-touch digital supply chain operating systems will rise in 2021 and significantly reduce enterprises’ business expansion costs. The scope of cost savings through B2B e-commerce is projected to be anywhere between 60 to 80%.
Joyjeet Maity is Vice President, Marketplace & SME Online at www.moglix.com
To learn more about manufacturing and supply chain trends in 2021, download our ebook titled Road to Self-Reliant Manufacturing: Procurement and Supply Chain Insights for 2021 here.
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