Tuesday 27 August 2019

Udaan raises $300M from Altimeter, GGV Capital, existing investors


Udaan, an online marketplace that caters to small businesses, has raised $300 million from Silicon Valley fund Altimeter Capital, GGV Capital, and existing investors DST Global and Lightspeed Venture Partners among others, regulatory filings indicate. 

The development was reported first by ET in its July 28 edition. The company is expected to be valued at $2.2 billion, almost double from its previous financing round. 

In regulatory disclosures made in Singapore, Trustroot Internet, the parent company of Udaan, said on Wednesday that it had made share allotment to investors including Hillhouse Capital and Footpath Ventures.

The round is likely to extend to $500 million with China’s Tencent coming onboard, people familiar with the matter indicated. “Tencent’s terms need to be further negotiated given the strategic nature of the investor,” said one person aware of the deal. The round is likely to close later this month.

Udaan is an e-marketplace to facilitate the purchase of goods by retailers, small- and medium-sized from wholesalers and traders across categories including apparel, electronics, pharmacy, staples and FMCG.

The company offers services including credit, logistics, software, marketing, sales, and distribution. It is founded by former top Flipkart executives Vaibhav Gupta, Amod Malviya and Sujeet Kumar. The company is estimated to be clocking $1.2 billion in annual gross merchandise value or GMV.

Udaan last raised a $225 million in September led by DST Global and Lightspeed Venture Partners, making it one of the fastest startups to achieve the unicorn tag.

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