India’s Udaan closes Series D at $585m

It follows a $300 million preliminary close last month that included the likes of GGV Capital, Hillhouse Capital, Lightspeed Venture Partners, Altimeter Capital, Footpath Ventures, and DST Global, which led the company’s $225 million Series C last year. The Series D was initially expected to raise about $500 million. Total capital raised to date is estimated at $870 million.

Udaan markets itself as India’s largest horizontal B2B e-commerce platform. The company was founded in 2016 by a team of former Flipkart executives to help small and medium-sized enterprises (SME) achieve scale by overcoming the domestic market’s unique language, cultural, and internal tax barriers. Its network includes three million retailers and 20,000 suppliers across 900 cities.

The company also secures payments and underwrites loans for SMEs, while facilitating end-to-end logistics services. Customers include traders, wholesalers, retailers and manufacturers looking to network in real-time and in their own language. The new capital will support expansions in the lending business and activity in categories such as food and industrial equipment.

“Udaan’s unique approach can enhance the capabilities of millions of retail stores across India,” Martin Lau, president of Tencent, said in a statement. “Udaan represents a powerful example of how technology can empower the business of small merchants, improve the efficiency of industries and bring benefits to consumers."

There are about 30 million SMEs in India, which account for 45% of national industrial output and 40% of exports. The sector is attracting increased attention, with deals in recent weeks including a $21 million round for loan services player Indifi Technologies and an approximately $13 million investment in SMECorner, a similar microlending platform. Last week, industrials-focused SME platform OfBusiness raised a $35 million Series D.

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• Topics
• South Asia
• Expansion
• Financials
• India
• Tencent
• GGV Capital
• Hillhouse Capital Management
• Lightspeed Venture Partners
• TMT
• SME