B2B e-commerce platform Udaan has closed its Series G equity funding round after raising $75 million (about Rs 650 crore), people aware of the development told VCCircle.
The funding was led by M&G Plc, with participation from other existing backers including Lightspeed Venture Partners, the people said, adding that the company was valued between $1.5 billion and $1.8 billion.
The latest round follows a $340-million round raised in December 2023. This round was also led by M&G and Lightspeed. In October 2024, the company raised Rs 300 crore in debt funding from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital.
Udaan chief executive officer and co-founder Vaibhav Gupta told employees about the latest fundraise in a town hall meeting on Monday, adding that the company is in advanced discussions to raise an additional $25 million from potential investors in the next quarter, said one of the people quoted above.
The company plans to use the fresh capital to enhance customer experience, deepen its market penetration, strengthen vendor partnerships, and expand its supply chain and credit capabilities, the people said.
Meanwhile, Udaan also secured approval from the National Company Law Tribunal (NCLT) for the consolidation of its various business entities into a single flagship entity - Hiveloop Ecommerce Pvt Ltd. The consolidation is aimed at simplifying operations and drive efficiency as it eyes future listing on public markets.
Udaan reported 65% revenue growth and a 70% rise in daily transacting buyers in the financial year through March 2024. Its gross merchandise value, however, remained flat at Rs 5,706.6 crore in FY24 from Rs 5,609.3 crore booked in FY23, according to previous media reports.
Udaan, founded in 2016 by former Flipkart executives Amod Malviya, Vaibhav Gupta, and Sujeet Kumar, is a B2B e-commerce platform which connects retailers, wholesalers, and manufacturers on a single platform. It operates in various categories such as FMCG, staples, fruits and vegetables, pharma, electronics, fashion, and groceries.
The company facilitates supply chain and logistics operations and also provides financial products and services through UdaanCapital. It is backed by investors including Lightspeed Venture Partners, DST Global, Tencent, Altimeter Capital, Hillhouse Capital, GGV Capital, Footpath Ventures, and Citi Ventures.
