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udaan, the business-to-business e-commerce start-up, has raised $340 million in Series E financing, led by the investment arm of the UK retail bank M&G.
Existing backers Lightspeed Venture Partners and DST Global also participated in the new round, which awaits the regulatory nod.
The funding includes a combination of fresh equity investment, as well as the conversion of existing debt (convertible notes) into equity.
Unicorn platform udaan merges business units
udaan will use the funds to strengthen customer experience, market penetration, strategic vendor partnerships, and better its supply-chain capabilities. It will also use the money to grow its loan book.
The Bengaluru-headquartered start-up helps merchants in smaller Indian cities and towns secure inventories from major brands, as well as gain access to working capital.
“The Series E round strengthens our balance sheet and fully funds our business plan. It enables our continued growth and profitability, positioning us to be public-market ready in the next 12-18 months. The regional-operated design will not only get us closer to our customers, but also make our operations more agile and efficient.
Udaan gears for 80 per cent y-o-y growth in 3-5 years
“We are committed to our mission to empower small businesses, while unlocking a uniquely Indian and huge $100-billion eB2B market opportunity,” said Vaibhav Gupta, co-founder and CEO.
While the company did not comment on its valuation, at its peak, Udaan was valued at around $3 billion.
With this fund-raise, udaan’s business is fully funded and, on course, to achieve its objective of becoming profitable in the next 12-18 months.
Udaan raised $280 million in an extended Series D round in January 2021, and separately raised more than $350 million in debt and convertible notes since then.
Founded in 2016, Udaan enables supply chain and logistics operations focused on B2B trade for daily delivery across more than 1,200 cities through udaanExpress.
It has operations across lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys and general merchandise. It claims to have over 3 million retailers and thousands of sellers on the platform across the country.
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