Udaan gets $300 million from Altimeter, GGV, others

BENGALURU:

Udaan

, an online marketplace that supplies products and gives loans to small merchants, has raised $300 million (Rs 2,143 crore) from a mix of new and existing investors.

Silicon Valley

’s hedge fund

Altimeter Capital

, venture capital fund

GGV Capital

, and existing investors like

DST Global

and

Lightspeed Venture Partners

have pumped in new capital in the Bengaluru-based startup, regulatory filings from Singapore showed.


This round is expected to go up to $500 million (Rs 3,572 crore) in size, as TOI first reported in its July 29 edition. The company is now being valued at $2.3 billion, according to calculations from business intelligence platform Paper.vc, which shared the regulatory documents. Udaan’s latest valuation is almost double from its previous financing round, when it raised $225 million (Rs 1,607 crore) last year.

Started by former Flipkart executives in 2016, Udaan has emerged as one of the largest online business-to-business (B2B) commerce platforms. The investment is made via Singapore-registered Trustroot Internet, the holding company of Udaan. Udaan co-founder Sujeet Kumar did not comment on the development.

There is a possibility of a new strategic investor joining the financing round, but those details have not been formally submitted yet. Udaan will be using the new capital to feed its expansion plans and scale up its lending business for merchants.

The new financing round also comes at a time when B2B startups have emerged as a favourite for investors. Tiger Global, the US-based investor, has been making a series of investments across different B2B companies here.

Udaan is said to be clocking about $200-million monthly sales across product segments like vegetables, smartphones, fast-moving consumer goods (FMCG), fashion, dry grocery, and electronics. Udaan has a network of about 2 million retailers or kiranas across 900 cities. It has a base of 25,000 sellers, a mix of small manufacturers, wholesalers and established consumer brands.

While Udaan is expanding across the country, players like US-based Walmart, Amazon, Chinese e-commerce major Alibaba and homegrown Reliance have also lined up aggressive plans to scale up operations in India.


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