Bengaluru-based B2B Business-to-business (B2B) platform Udaan has raised $585 million from Tencent, Altimeter, Footpath Ventures, Hillhouse, GGV Capital, and Citi Ventures, reported Business Standard. Udaan’s existing investors Lightspeed Venture Partners and DST Global also contributed to the round.
Citing founder of deal tracker Paper.vc, the Business Standard report states that, Tencent led the Series D financing round, by contributing roughly a quarter of the total raise, giving the firm a “post-money valuation in the range of $2.5 billion”..
With this fresh funding, Udaan raised a total of $870 million to date. Last year in February, in one of the largest early-stage startup funding round in India, Udaan raised $50 million in its series-B round of funding led by Lightspeed Venture Partners and Russian billionaire Yuri Milner.
Founded in 2016, by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, Udaan has operations in categories such as lifestyle, electronics, home and kitchen, staples, fruits and vegetables, fast-moving consumer goods, toys, and general merchandise.
In a statement, Martin Lau, president of Tencent, said,”Udaan’s unique approach could enhance the capabilities of millions of retail stores.” Tencent last invested in July this year, when the Chinese investor contributed in $100 million funding round of Indian OTT platform and a global offline video player, MX Player.
“Empowering millions of small businesses to effectively procure and sell goods is not only a massive business opportunity, but will also help transform the economy by providing internet-scale productivity gains to merchants, wholesalers, and manufacturers,” said Brad Gerstner, founder and CEO of Altimeter Capital, and Ram Parameswaran, partner at Altimeter Capital.