Exclusive: Lightspeed now controls over 40% stake in Udaan after latest infusion

Earlier this month, B2B e-commerce platform Udaan had announced raising $280.5 million in its extended Series D round from new and existing investors.

While the company didn’t disclose the details of the round, Fintrackr has decoded the tranche via regulatory filings filed by its Singapore-based holding entity.

Lightspeed led the round with close to 73% of the tranche by investing $203.5 million, filings show. Tencent Cloud invested $50 million whereas new investor Moonstone Investment poured in $10 million.

Altimeter Capital, GGV Capital and DST Asia have invested $5 million each. Besides Moonlight, Octahedron Capital is a new investor in this tranche. The San Francisco-based internet economy focused fund has infused $2 million. 

According to Fintrackr’s estimate, Udaan has been valued at $2.94  billion in this round. 

Following the fresh infusion, Lightspeed has increased its holding to 40.8% in the Bengaluru-based firm while the co-founders have diluted their collective stake to 30.5%. Yuri Milner’s DST Global is the second-largest external stakeholder in Udaan, holding 16.04% stake. 

After its latest investment, Tencent now holds 7.04%, while  Altimeter and Footpath Ventures control 3.7% and 1.4% stake respectively. Other investors including new investors Moonstone Capital, Octahedron Capital along with existing investors Fifth Avenue Capital, GGV Capital among others collectively hold the rest 2.64%.

With the recent infusion, Udaan has mopped up $1.15 billion in funding to date.

A valuation report filed by Udaan in September 2019 had valued the company at $7.5 billion but the recent tranche valuation is little below $3 billion. The report was based on projected cash flows and equity infusions. 

At present, over three million retailers source inventory from 25,000 sellers across 900 cities in India. Udaan makes money through logistics and credit offering to buyers.

While the Covid-19 induced lockdown proved to be a tough phase for Udaan as the company was forced to lay off thousands of contract staff to conserve capital and lost half of its business, the company claims that it has managed to recover 80% of its business in the past three-four months.