India-based business e-commerce marketplace Udaan has secured $585m in a series D round featuring internet group Tencent and financial services firm Citi, TechCrunch reported yesterday.
Altimeter Capital, Footpath Ventures, Hillhouse Capital, GGV Capital, Lightspeed Venture Partners and DST Global also took part in the round, which valued the company somewhere between $2.3bn to $2.7bn, a person familiar with the matter told TechCrunch. Citi invested through its Citi Ventures unit.
Udaan operates an e-commerce platform that connects a network of about 25,000 large wholesalers and traders to a customer base of about 3 million smaller businesses, such as restaurants, farmers or local shops, facilitating the distribution of a wide range of consumer goods.
Buyers and sellers can also access credit and working capital through the platform, and Udaan runs a supply chain network that supports delivery. The series D cash will allow both services to be strengthened as it adds more product categories to its offering.
Tencent president Martin Lau said in a statement: “Udaan’s unique approach can enhance the capabilities of millions of retail stores across India. It represents a powerful example of how technology can empower the business of small merchants, improve the efficiency of industries and bring benefits to consumers.”
The company has now received $870m in funding altogether. Lightspeed Venture Partners led its $10m series A round in 2016 and co-led a $50m series B in February 2018 with Lightspeed India and Apoletto, the investment vehicle for DST Global founder Yuri Milner.
DST Global and Lightspeed Venture Partners subsequently co-led Udaan’s $225m series C round in September 2018, with the round closed at a valuation of at least $1bn.
