Investors’ Game

Funders seem undeterred by losses and low profit margins in B2B FMCG space, as they continue to invest in new-age B2B commerce companies. Are they eyeing profits at all?

In January, Udaan, a business-to-business (B2B) ecommerce start-up, closed a $200-million debt financing round by issuing convertible notes to primarily five new investors. Around the same time, DealShare, a social commerce grocery start-up, raised $165 million from Tiger Global and Alpha Wave Global, and became the fifth Indian unicorn of the year. Back in December, Jumbotail, a retail platform and food and grocery B2B marketplace, raised $85 million in a Series C funding round led by Artal Asia, an affiliate of global equity investment firm Invus. Moglix, another B2B commerce platform, raised $120 million last year in a financing round led by Alpha Wave Global and Harvard Management Company at a valuation of $1 billion.