B2B ecommerce platform Udaan secures $340 million in Series E fundraising round
- ByStartupStory | December 14, 2023
Udaan, a prominent B2B e-commerce platform, has successfully raised $340 million in a Series E round, led by M&G Plc, in addition to contributions from Lightspeed Venture Partners and DST Global.
The company outlined its intentions to utilize the newly acquired funds for enhancing customer experiences, expanding market reach, fostering strategic vendor collaborations, and fortifying long-term capabilities in supply chain and credit, as stated in a press release.
Udaan’s co-founder and CEO, Vaibhav Gupta, expressed optimism about the fundraising, remarking, “… It enables our continued journey of growth and profitability, positioning us well to be public-market ready in the next 12-18 months.”
Although the precise valuation remains undisclosed, it is speculated that the equity component may have transpired at a relatively lower valuation compared to Udaan’s peak valuation of approximately $3 billion.
Established in 2016, Udaan operates as a facilitator of supply chain and logistics operations, concentrating on B2B trade, catering to daily deliveries across more than 1,200 cities via udaanExpress. Its spectrum of operations spans diverse sectors, including lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys, and general merchandise.
The platform boasts a significant user base, encompassing over 3 million retailers and numerous sellers nationwide. Despite notable achievements, its gross revenue (GMV) saw a decline of 43.1% to Rs 5,629 crore in FY23 from Rs 9,900 crore in FY22, as per the financial statements filed by Trustroot Internet, its group company in Singapore. Concurrently, losses also contracted by 33.7% to Rs 2,076 crore in FY23 from Rs 3,132 crore in FY22.
While Udaan underwent workforce reductions of around 500 employees in the past year, the company clarified that these actions aimed at enhancing operational efficiency rather than stemming from financial exigencies.
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