B2B ecommerce player Udaan, a Flipkart alumnae product, raises significant capital
The online business to business industry in India is slowly spreading its fledgling wings. Companies are making their mark and impressing investment firms to part with money. The latest to raise capital is Udaan.com. The company, brainchild of formerFlipkartexecutives (Sujeet Kumar, Vaibhav Gupta and Amod Malviya),has raised $ 10 million from Lightspeed Venture Partners India and US.
Udaan.com is in the pilot stage, and is focussing on mobiles and apparel. The company plans to launch full-fledged operations in the next two months.
B2B in India looking good
The industry isgaining traction in Indiaand everyone wants a share in the pie. India’s B2B market is slated to grow toRs. 45 lakh crore by 2020(from the current 19.13 lakh crore). Leading companies likeAmazon, Alibaba, andShopclueshave their wholesale ventures. Earlier this year,Shopclues tied upwith Chinese company DHgate and the Singapore Traders Association to improve its wholesale arm.
Amazon has extendedits B2B operations to include more cities, and hasinvested Rs. 115 crores.Alibaba plans to collaboratewith transport companies including DHL and Delhivery to expand its business. The purpose is to aid its sellers. The Chinese ecommerce company is also in talks with banks to raise capital.
Wholesale business has greater scope than retail due to the sheer volume of sales, and the reduced role of discounts in the equation. In this climate, it is heartening to know that new players are coming in, and getting the required support from investors.