Grapevine: Udaan eyes $2.7 bn valuation in new round; Canadian funds in race for GIP\'s road assets
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Business-to-business e-commerce platform Udaan is looking to raise $500 million in new round of funding that it is likely to finalise in coming months, a media report said.

The round may value the company around $2.7 billion, The Times of India reported, citing two sources.

Existing investors DST Global and Lightspeed Venture Partners as well as a couple of new investors, US-based Altimeter Capital and China’s Hillhouse Capital, are likely to take part in the round, the report said.

Udaan plans to use the fresh capital to build its supply chain network and grow its non-banking lending business, the report said.

Udaan, operated by Bengaluru-based Hiveloop Technology Pvt. Ltd, had raised $225 million (Rs 1,593 crore) in its Series C round of funding late last year.

The company was founded in 2016 and caters to small and medium businesses. It connects traders, wholesalers, retailers and manufacturers on a single platform via a mobile app.

Meanwhile, Canada Pension Plan Investment Board (CPPIB) and Caisse de dépôt et placement du Québec (CDPQ) are the only suitors left to acquire Highway Concessions One, a roads portfolio owned by US-based infrastructure fund manager Global Infrastructure Partners (GIP), The Economic Times reported.

Citing two people aware of the development, the report said other contenders including Piramal Group and National Investment and Infrastructure Fund have backed out due to high valuations.

The report said the earlier valuation of Rs 3,500 crore could come down to Rs 2,800 crore due to subdued growth in highway traffic. However, a separate report in the Mint newspaper said that the two pension funds have bid around Rs 3,200 crore and that the assets could even be sold at a higher price.

Highway Concessions One, which was put on the block in December 2018, consists of seven road assets with a route length of 472 km including five toll roads and two annuity roads across seven states. The final buyer will be selected in the next couple of weeks, the reports said.

GIP took over the highway assets when it acquired the infrastructure business of IDFC Alternatives last July.

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