Udaan.com, an online B2B commerce platform, has secured $10 million in its fresh funding round from Lightspeed Venture Partners India and Lightspeed US.
In a statement, Bejul Somaia, Partner at Lightspeed Venture Partners, said:
It’s very rare to have an opportunity to back an experienced team of founders like Sujeet, Amod and Vaibhav, who have worked together for several years at Flipkart and we are excited to be partnering with them.
The company was founded earlier this year by Sujeet Kumar, Vaibhav Gupta and Amod Malviya. All three of them left their jobs at Flipkart to start this venture. Sujeet was heading the WS Retail Pvt. Ltd, Vaibhav was the Senior VP while Amod was the CTO.
Udaan is a web platform which connects SMBs, manufacturers, wholesalers, traders, and retailers. Currently, it functions in two categories — mobile accessories and fashion products. The website and mobile application are currently in beta testing phase.
According to a report from ET, the company’s founders have invested $1.5 million from their own pocket as a part of the company’s seed funding round. The report also suggests that the company’s valuation after this new funding round is around $40 million.
The platform is still in the beta phase. However, as per Sujeet Kumar, the platform will be launched within two months. The startup has a team of around 20 people, most of whom have previously worked at Flipkart.
While B2C startups are leading the e-commerce sector in India, B2B startups are also getting attractive. As per the data from Tracxn, around 260 startups have been founded in this sector since 2015.
The funding for Udaan comes at a time when some of the global e-commerce giants — US-based Amazon and China-based Alibaba, have already started entered into B2B commerce space in India. Amazon’s wholesale arm in India, which was set-up in 2013, is currently operational in Karnataka only.
On the other hand, Alibaba has already partnered with various companies in India, including Kotak Mahindra Bank, IDFC Bank, Delhivery, DHL, and Aditya Birla Finance in order to provide better services to the small businesses on its platform.