Business-to-business e-commerce firm Udaan has raised $280 million from new investors Moonstone Capital Partners and Octahedron Capital, besides existing investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent Holdings, the company said on Wednesday. The funding round valued it at a shade over $3 billion, a person familiar with the matter said on condition of anonymity.
Udaan had raised $585 million from a clutch of investors in October 2019, valuing the e-commerce B2B firm at $2.5-2.8 billion.
Udaan was founded in 2016 and turned a unicorn within two years. The current fund-raise is a follow-on round from the 2019 round and with this, Udaan has raised about $1.15 billion so far.
The company said it will use the funds to create a B2B e-commerce market in India and reach out to more small businesses.
Udaan will invest in expanding products and categories on its platform, improve user experience, enhance technology and help small and medium enterprises develop financing capabilities, and reinforce supply-chain infrastructure.