Udaan, a B2B online marketplace based in Bengaluru, is close to raising $500 million in a fresh funding round led by existing backers Lightspeed Venture Partners and Yuri Milner’s DST Global, which is likely to push its valuation to $2.2 billion.
According to a report in The Economic Times, new investors Hillhouse Capital and Altimeter Capital may also join the round.
This comes two days after Udaan raised as much as Rs 68.98 crore from its Singapore-headquartered parent Trustroot Internet, YourStory reported. Earlier this month, the B2B marketplace also raised Rs 34.42 crore from Trustroot.
Udaan reached its unicorn status (a startup valued at $1 billion or above) after it raised $225 million in Series C funding from Russian internet billionaire Yuri Milner’s DST Global and Lightspeed Global Growth in September last year. In February last year, it had secured $50 million led by Lightspeed Venture Partners US.
The company had also held discussions with Chinese internet giant Tencent, South African media conglomerate Naspers, SoftBank Vision Fund, Tiger Global, and Sequoia Capital for funding in the recent past. These talks fell through as some investors thought the valuation ask was too steep, the report said.
According to Crunchbase, Udaan has raised $294.9 million in funding to date.
Udaan was launched in November 2016 by Vaibhav Gupta, Amod Malviya, and Sujeet Kumar, former senior executives at Flipkart, and became fully operational in 2017. It is an end-to-end marketplace that connects businesses in consumer goods, fashion and electronics, offers logistics services and also started lending early this year.
Udaan is one of the many startups trying to tap India’s B2B e-commerce market potential.
The overall B2B market size is expected to be around $700 billion by 2020, according to an April 2016 report by the Confederation of Indian Industry and Deloitte. Other startups operating in the space include Just Buy Live, Power2sme, and Moglix.