Bengaluru-based B2B e-commerce startup, Udaan, has hit a major milestone with a $340 million funding in its Series E round. The funding round was led by the investment arm of the UK retail bank M&G Plc, making it one of the most substantial funding rounds secured by an Indian startup in 2023. This funding round also witnessed the participation of existing investors, including Lightspeed Venture Partners and DST Global.
The funds raised include a combination of equity and convertible debt. The completion of this round is contingent upon regulatory approvals. While specific details about the valuation post-funding were not disclosed, Udaan was valued at $3.1 billion in 2021. The Series E funding is expected to provide the startup with the financial impetus required to further strengthen its position in the market.
This funding round is expected to help Udaan towards its mission of empowering small businesses across India. The funds will be allocated to enhancing customer experience, market penetration, strategic vendor partnerships, and reinforcing supply-chain and credit capabilities.
This Series E funding is also the first equity injection Udayan has received since 2021. Udaan expressed confidence that this financial boost positions them as “fully funded” and on track to achieve profitability within the next 12-18 months.
Udaan has been a prominent player in the business-to-business e-commerce space. The company provides essential services to merchants in smaller Indian cities and towns. The startup facilitates access to inventories from major brands and offers solutions for working capital challenges faced by businesses in these regions. The company caters to the vast network of kirana stores, which are integral to India’s retail landscape. Udaan also connects thousands of sellers to millions of retailers, spanning various categories, including grocery, electronics, lifestyle, and more.
Udaan was founded by three former Flipkart executives in 2016 with an aim to empower small businesses. The company also has undergone strategic changes over the years to be relevant in the business. This latest funding round signifies a strong vote of confidence from investors and sets the stage for an exciting chapter in the startup’s journey.
