Bengaluru-based B2B e-commerce marketplace Udaan has raised $50 million (~ ₹320 crore) in its series-B round of funding which marked as one of the largest early-startup funding round in India, reported Times of India.

The funding round was led by Udaan's existing investor Lightspeed Venture Partners and Russian billionaire Yuri Milner, who has come on board new in his personal capacity.

Launched in November 2016 by three ex-Flipkart executives -- Vaibhav Gupta, Amod Malviya and Sujeet Kumar, Udaan is an end-to-end marketplace that connects businesses in consumer goods, fashion and electronics, offers logistics services and has recently started lending. With sellers across 80 cities, it delivers to more than 500 cities and will expand to more areas with the new capital. Its average order value is between Rs6,000 and Rs7,000.

The startup will use the freshly raised funds to add new sellers and buyers, expand logistics network, hire more engineers and sales executives and launch new services like lending

The startup had earlier raised $10 million in series A funding from Lightspeed India and Lightspeed US.

“We’ve raised this round because we have validation that our product is working. The market opportunity is huge and in just 15 months of launching, we’ve reached more than 500 cities. We also account for more than 15-20% of the business of many of the sellers on the platform. And our average repeat transactions are seven times a month. These metrics are big validation that there’s massive demand for our kind of end-to-end marketplace,” said Sujeet Kumar, who was heading logistics at Flipkart before co-founding Udaan.

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 (CII) and Deloitte.

Last year, B2B e-commerce startups raised more than $200 million, the highest since 2010, according to Tracxn, a firm that tracks startups.

The biggest B2B startup funding in 2017 were $100 million funding of Just Buy Live via Ali Cloud Investment, Power2sme’s $36 million funding in series E round and Ratan Tata backed Moglix's $12 million fund raise via IFC, Rocketship and others. And, this year Udaan’s $50 million raise is largest large both for a Series B round and for a B2B startup.

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