Udaan, a homegrown business-to-business e-commerce startup, has secured $280 million funding. The startup is aiming to serve more mom-and-pop businesses that are buying products online in the wake of the COVID-19 pandemic.
The round has also seen participation from existing investors including Chinese tech giant Tencent, Lightspeed Venture Partners, DST Global, GGV Capital, and Altimeter Capital, along with new investors, Octahedron Capital, and Moonstone Capital.
Founded in 2016, the Bengaluru-based firm is now valued at over $3 billion.
Amod Malviya, Co-Founder of Udaan, said in a press release, “COVID-19 has accelerated the already fast digital-led evolution of highly fragmented and unorganised Indian trade/ retail industry. While at the same time, the pandemic also highlighted the unique structure of the Indian economy, with millions of kiranas and neighborhood stores becoming the lifeline of our country at the time of crisis.”
“Udaan is at the forefront of this uniquely Indian eCommerce opportunity, emerging in the last 4 years as one of the largest eCommerce platforms in India, while taking an India-first mobile-first approach to eCommerce. This financing enables us to further our journey of taking eCommerce to the depth and breadth of the country, with Udaan's unique low-cost model for core middle India,” Malviya added.
The additional financing will be utilised by Udaan to expand the B2B e-commerce market and improve capabilities to serve small and medium businesses and achieve profitability.