Unicorn business-to-business marketplace Khatema Fibres, a producer of environmentally friendly paper goods, was purchased by Moglix for Rs 80 crore, or almost $9.4 million.

Moglix claims that this agreement would increase its range of sustainable packaging and solidify its position as a leader in the industrial procurement market. It will promote community progress and prosperity by improving local infrastructure and giving farmers and craftspeople access to new markets. Moglix recently launched Next Day Delivery in more than 12 cities, with plans to grow to 40 cities. This acquisition is in line with those plans.

According to a news statement, Moglix also intends to consolidate and diversify its offerings, cut lead times, guarantee effective delivery, and enter five new production sectors as part of its larger business strategy.

Khatema Fibres, which was founded in 1990, specialized in producing sustainable paper and had a 50,000 metric ton yearly capacity. Specialty high-strength kraft paper, interleaving paper, machine-glazed and machine-finished papers, different types of tissue, sublimation paper, virgin test liners, and food-grade packaging solutions are among the company's eco-friendly products.

Rahul Garg founded Moglix in 2015, and company sells a variety of goods online, including motors, electrical supplies, power tools, and medical supplies. In 2021, the firm raised $120 million in its Series E funding round, which was co-led by Harvard Management firm (HMC) and Falcon Edge Capital. Tiger Global, Sequoia Capital India, and Venture Highway also participated. To enter the US and Mexican markets, the business has invested $50 million in Credlix, its supply chain finance division.