Online B2B marketplace, Udaan.com has secured Series B funding of $50 million, led by existing investors Lightspeed Venture Partners India and Lightspeed US, reports Times of India. Russian entrepreneur and investor Yuri Milner also participated in the round. The company will use the funds to accelerate expansion, and will add new sellers and buyers on the platform, as well as expand its logistics network, and employee base. The company is also expected to launch new services like lending.
Founded in 2016 by Amod Malviya, ex CTO of Flipkart, Sujeet Kumar and Vaibhav Gupta—both who held executive roles at Flipkart, Udaan is a B2B marketplace which brings wholesalers, retailers, and traders on the platform, and also provide services for transactions like payments integration, and a logistics services. The platform claims to have 20,000 traders on its platforms currently. Udaan also had mobile apps for the traders. We have reached out to the company for confirmation and more details, and awaiting for their response.
In November 2016, Udaan had raised $10 million in series A round of funding led by Lightspeed Venture Partners India and Lightspeed US. At that time, the marketplace was running on pilot mode and was dealing with mobile accessories and fashion products.
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. The company competes with the players like Moglix, a B2B ecommerce company specializing in procurement of industrial products for manufacturers, which raised $12 million last year in July in a Series B investment from the International Finance Corporation (IFC) and Rocketship.vc, along with Moglix’s existing investors Accel Partners, Jungle Ventures, Shailesh Rao, and Samir Sood’s Venture Highway. Other players are like, Industrybuying, OfBusiness, Power2SME, Tolexo from IndiaMart. Amazon India also has its B2B supply services for SMEs, at AmazonBusiness.in. Walmart too launched its B2B marketplace in India in 2014, at BestPrice.in.