Udaan Raises $280 Million, Will Use The Funds For Creating A B2B e-commerce market in India

Udaan

Udaan is a 2016 Bengaluru-based start-up that was formed by former employees of Flipkart, Anmol Malviya, Vaibhav Gupta, and Sujit Kumar.

The start-up aimed for starting the business as an offering which would allow the goods to be able to reach even in the most far away or distant areas in India.

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Udaan India is a B2B model that connects traders and wholesalers to the manufacturers. The platform enables the manufacturers to sell their products and provide the services online as well as on a mobile application platform.

The company offers food (including fruits, vegetables, and staples), non-food (including fashion and electronics), and pharmaceuticals.

The company has also collaborated with various entrepreneurs to help them manage the sales, marketing operations, and various other facilities for small business owners to help them handle the accounts in a more precise and understandable manner.

The former Flipkart employees had great knowledge and experience in handling and expanding their services even in the remotest areas.

One of the most disturbing elements that the company noticed was that the retailers and wholesalers faced trouble in the financing sector because the retailers had to take loans from local lenders who would charge them high-interest rates.

Udaan platform provides the retailers as well as the wholesalers a capital loan with cost-effective rates so the business would not be exploited.

Another problem that Udaan initially faced was the establishment of a genuine supply chain network.

Maintaining a proper supply chain network is an important operation that needs to be taken care of in a business in an E-Commerce sector.

Udaan has major competition with ZoomTail, BigTrade, and TradeKosh as they are also the E-Commerce B2B platforms.

Udaan Founders
Amod-Malviya, Vaibhav Gupta and Sujeet Kumar (co-founders of Udaan) | Image Source: TechCrunch

Udaan Raises $280 Million

E-Commerce B2B platform has started the new year with a massive fund of $280 Million. The funding was majorly from the existing investors including Internet giant Tencent.

The list of existing investors includes venture funds LightspeedVenture Partners, DST Global, GGV Capital, and Altimeter Capital.

New investors included Octahedron Capital and MoonStoneCapital.

The valuation, according to the post investments of Udaan, is over $3 Billion and the company has decided to grow their capital to double by learning Technology.

In 2019 the company raised a fund of $585 Million. The company’s total raised fund has been evaluated as $1.15 billion in all.

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Kritika
Student with ambitions, writer with ideas.