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Home Business & Finance Indian B2B e-commerce startup Udaan raises $280 million – TechCrunch

Indian B2B e-commerce startup Udaan raises $280 million – TechCrunch

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Summary (IA Generated)

Business-to-business marketplace Udaan has raised $280 million from new and existing investors as the Indian startup builds a war-chest to accelerate its growth and fend off rivals.

The Bangalore-based startup, which secured $585 million prior to the new capital as part of its Series D round and $1.

The startup today serves over 3 million retailers and small and medium-sized businesses and it has on boarded thousands of brands including Coca Cola, PepsiCo, Boat Lifestyle, Micromax, HP, LG, ITC, HUL, and P&G.

Amod Malviya, co-founder of Udaan, said in a statement that the coronavirus pandemic underscored the significance of small businesses and mom-and-pop shops (popularly known as kiranas) in the country.

Other than the inventory problem, Udaan also helps merchants secure working capital.

Small businesses, especially mom-and-pop shops, rely on money they secure from selling their existing inventory to buy the next batch.

A typical digital SME lender focusses on Rs1-5 million ($13,575 to $67,875) ticket size with no collateral, average tenure ~12-18 months, and with some ecosystem anchor,” analysts at Bank of America wrote in a recent equity research report, obtained by TechCrunch.

Udaan said it will deploy the fresh capital in further creating the market, and expanding the selection of products and categories it currently offers.

Additionally, the four-year-old startup said it will expand its financing capabilities for small businesses and its supply chain network.

The fresh fundraise “reflects the long-term truly transformative and fundamental value creation potential that Udaan platform offers for the lives and businesses of Indian MSMEs, who are major job creators and form the backbone of our economy and the society,” said Malviya.

“Participation of existing and new investors in this financing highlights the increasing recognition of capital markets of this unique nature of the Indian market, and the opportunity it offers.

In the past two years, scores of startups and giants such as Reliance, and Amazon have started to explore the business-to-business market in India.

7 billion in Jio Platforms earlier this year, has said that it will explore various ways to work with Reliance to digitize the nation’s mom and pop stores, as well as other small- and medium-sized businesses.

For JioMart, Reliance Retail is working with retail shops, giving them a digital point-of-sale machine to make it easier for them to accept money electronically.

It is also allowing these shops to buy their inventory from Reliance Retail, and then using their physical presence as delivery points.


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