B2B marketplace Udaan close to raising $500m at $2.2b valuation: Report

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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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.