Indian B2B firm Udaan raises $114m series G

India-based B2B platform Udaan has completed its series G funding round, raising US$114 million in equity capital.

The funding was led by M&G Investments and Lightspeed, with contributions from both existing and new investors.

The capital will be used to enhance Udaan’s presence in key categories, including Fast-Moving Consumer Goods (FMCG) and Hotel, Restaurant, and Catering (HoReCa).

The company also intends to expand its private label offerings in the staples segment and strengthen its financial position in preparation for a public market listing.

Founded in 2016, Udaan operates across various sectors, including FMCG, staples, and pharmaceuticals.

🔗 Source: Udaan

🧠 Food for thought

1️⃣ India’s B2B e-commerce rides the third wave of startup evolution

udaan’s successful $114 million Series G round reflects the maturation of India’s startup ecosystem, which has evolved through three distinct phases.

The company emerged during what experts identify as the “third wave” of Indian startups, characterized by B2B models and deep-tech innovation, following earlier waves focused on IT services and consumer-facing businesses 1.

With 70% market share in India’s eB2B space and a $3.1 billion valuation, udaan exemplifies how B2B platforms have become investment magnets, as evidenced by the sector raising $2.36 billion in Q1 2019 alone, a 33% increase from the previous year 2.

This funding pattern shows investors pivoting toward enterprise-focused startups that address inefficiencies in traditional supply chains rather than consumer-focused ventures that dominated earlier funding cycles.

udaan’s hybrid model combining “highly available eCom app + new-gen tech-first sales” demonstrates how B2B platforms are creating entirely new digital infrastructure for India’s massive but fragmented traditional retail sector.

2️⃣ FMCG and HoReCa targeting captures high-growth market segments

udaan’s strategic focus on FMCG and HoReCa segments aligns with projected market growth, as the Indian FMCG market alone is expected to reach $240 billion by 2025 3.

The company’s decision to strengthen these specific categories is data-driven—the global FMCG B2B e-commerce market is growing at a CAGR of 9.2% and is projected to reach $1,354 billion by 2034 4.