The India B2B firm Udaan completes its Series D

Udaan saw its valuation hit $2.3 billion after its latest capital raise. The company’s new investors included Altimeter Capital, GGV Capital, and Hillhouse Capital. Previous investors have included DST Global and Lightspeed Venture Partners. The firm holds the record for being the fastest Indian startup to make it to the prized ‘unicorn’ status.

It achieved that mark in September 2018 when it raised $225 million.

Udaan founders worked previously at Flipkart

Udaan was founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta.

The platform facilitates deals in fashion products, groceries, and electronics between businesses such as manufacturers, brands, and retailers and is present in 900 cities.

The firm also provides logistic services and credit financing. Its in-house service Udaan Express delivers most of the platform orders. Udaan is now said to be doing an annualized gross merchandise value of around $2 billion.

The revival of B2B in India

According to founder Sujeet Kumar, the fortunes of B2B in India went through a sea-change after 2016. Three structural factors played a major role in this metamorphosis. The government’s introduction of GST was a huge enabler of transportation of goods interstate. Demonetization spurred the growth of digital payments in the country. Lastly, the quick rollout of 4G internet in the country enabled rapid communications, data exchange, and the ability to conduct business on the internet.

The spate of B2B funding rounds that followed

Finally, the rapid growth in online business has attracted venture capitalists to the country in recent months. For instance, Tiger Global invested $89.5 million and $60 million in agri-tech company NinjaCart and industrial goods marketplace Moglix, respectively.

For more on private equity and venture capital deals in India, check out this update.