E-commerce startup Udaan is in talks to raise $500 million in a new round of funding that is to be finalised in the coming months. This latest funding round is said to increase the company’s valuation to nearly $2.7 billion. The B2B marketplace is said to be close to raising the $500 million led by investors including Lightspeed Venture Partners and DST Global.
Chinese conglomerate Tencent is also reportedly in discussions with Udaan for a possible investment. The 2.7 billion valuation is going to be another significant achievement in the 3-year old company’s history, which in 2018, became the fastest Indian startup to reach ‘unicorn’ status.
Founded by ex-Flipkart employees – Sujeet Kumar, Vaibhav Gupta, and Amod Malviya in 2016, Udaan connects SMB sellers, manufacturers, traders, wholesalers and retailers, among others. For the members, it also provides credit facility to a select number of small sellers on its platform.
It supplies products across categories including FMCG, groceries and smartphones and boasts of around 25,000 sellers currently. Udaan is clocking $1.2 billion in GMV (gross merchandise value) and over 15 Lakh products, 10 Lakh retailers along with 500 brand partners using the e-marketplace.
The overall B2B market size is currently expected to be around $700 billion by 2020, as per a Confederation of Indian Industry and Deloitte report. In its segment, it competes with players like Moglix, Bizongo and Power2SME, among others.
With this the company aims to inject the capital to build supply chain network and scale up the NBFC business.