Hiveloop Technology, which owns and operates B2B e-commerce platform Udaan, has received about Rs 69 crore from Singapore-based holding entity – Trustroot by issuing 1,00,600 Series D CCPPS at a price Rs 6,857.85 per share.
This is the third round of funding from the holding entity for Udaan this year. Previously, the company had raised about Rs 173.42 crore across two tranches in July and May this year.
According to RoC filings with MCA, Udaan would be using funds towards expansion of business and to meet the working capital requirement.
The fund infusion looks like a part of Udaan’s $225 million equity financing round in September 2018 led by two of its existing investors DST Global and Lightspeed Venture Partners.
The company has received this tranche when it’s in conversation to raise a billion USD at $2 billion valuation. According to Entrackr’s sources, it has been engaged in conversation with existing as well as new investors including SoftBank for the mega-round.
Udaan helps retailers to procure inventories across categories such as smartphones and electronics, apparels, FMCG and home furnishing among others. Apart from procurement, it also helps with working capital requirements and logistics.
As of now, the company gives a free credit line for a month. Udaan used not to charge for logistics but according to its FAQ’s section – now retailers have to bear the logistics cost.
Incepted in 2016, the company became the fastest Unicorn in September last year after raising an eye-popping round. Currently, Udaan is expected to deliver over 1,000 cities and has over 2,00,000 buyers and sellers on the platform.