Online B2B marketplace Udaan.com has secured $10 million in series A round of funding led by Lightspeed Venture Partners India and Lightspeed US, reports Livemint. Udaan is currently on a pilot mode and connects manufacturers, wholesalers, traders and retailers. It currently deals with mobile accessories and fashion products. The company plans to go live in the next two months, added the report.
Udaan was founded in this year by Amod Malviya, ex CTO of Flipkart, Sujeet Kumar and Vaibhav Gupta—both who held executive roles at Flipkart. The company’s website presently does not provide any pricing details or details of how the B2B platform works. It however lets wholesalers, retailers, and traders register with the site for a ‘beta’ program. The site mentions that the company would provide ‘escrow protection’ for transactions, payments integration, and a logistics service.
B2B marketplace in India
Indian government allowed 100% FDI in B2B sector in 2012 with some restrictions. Following the policy change, several startups were setup in India within the B2B space, which saw active investments from both individual investors and venture capitalists.
Currently the B2B industry in India is led by companies like Tolexo which claims over 7,000 sellers listing over a million products; IndiaMart which claims 26 lakh sellers listing over 4 crore products. B2B giant Alibaba also has operation in India which recently opened global reselling to Indian merchants; it currently claims to have 4.5 million Indian SMEs on board. Amazon India also launched its B2B supply services for SMEs in India last year and committed an investment of Rs 115 crore into the unit in September. Walmart launched its B2B marketplace in India in 2014.
Apart from this some notable startups in the B2B space include VegFru, an online B2B marketplace that connects small and large farmers with suppliers. Similarly, Ninjacart helps supermarkets, kirana stores and small shops to buy fresh fruits/vegetables, and FMCG products from farmers and independent brands. Other startups in the space include Power2SME, OfBusiness, and Moglix which mostly focuses on industrial or SME level buying and selling.