The company, which caters to other businesses, plans to use the proceeds of this fundraise to strengthen its vendor partnerships and supply chain operations.

The fundraising was led by M&G Investments, a part of UK-based investment firm M&G, and Udaan's existing investors including Lightspeed Ventures and DST Global.

The Bengaluru-based company provides smaller businesses with supply chain and logistics services and enables daily delivery across more than 1,200 cities through its online distribution service, udaanExpress.

It competes with Walmart-backed Flipkart in this field.

(Reporting by Kashish Tandon in Bengaluru; Editing by Eileen Soreng)