Udaan, the B2B trade platform, has successfully closed a new Series G equity funding round, raising $75 million. The round was led by M&G Plc, with participation from existing investors including Lightspeed Venture Partners. The announcement was made by Vaibhav Gupta, CEO and co-founder of the company, during a recent town hall meeting with employees.
In addition to this funding, Gupta also shared that Udaan is in negotiations to secure an additional $25 million in the upcoming quarter from potential investors, which would further add to its capital base. This latest round of funding follows a series of successful fundraising initiatives by the firm, and comes at a time when the startup is preparing for its initial public offering (IPO). Udaan plans to go public in India by 2026 (or late-2025).
The latest infusion of capital adds to the $340 million it raised in December 2023, bringing its total funding to date to $1.88 billion. The company’s valuation remains around $1.8 billion, which has remained consistent through its recent rounds of fundraising. In addition to its equity funding, Udaan has raised significant amounts through debt financing. In October 2024, the company secured approximately ₹300 crore (more than $35 million) from various investors, including Lighthouse Canton, Stride Ventures, and InnoVen Capital.
The proceeds from the latest round of funding will be deployed towards expanding Udaan’s market presence and strengthening its strategic vendor partnerships. The company also plans to bolster its supply chain and credit infrastructure, ensuring that it can serve a larger customer base as it continues to scale its operations. Udaan currently faces stiff competition from some of the biggest names in the sector, like Amazon, Flipkart, and Reliance’s JioMart, which are also major players in the domestic online marketplace sector.
Currently, the nine-year-old firm connects over 25,000 sellers with 30 lakh retailers across a range of industries, including FMCG, pharmaceuticals, electronics, and general merchandise, and operates across more than 900 cities in India. The startup’s finances speak in its favour- despite a modest increase of 1.7% in gross merchandise value (GMV) to ₹5,706 crore in FY2023-24, the company managed to reduce its EBITDA burn by 36%, amounting to approximately ₹923 crores. Additionally, the company achieved a 35% reduction in SG&A (selling, general, and administrative) expenses, and clocked a growth in revenue and a 70% rise in daily transacting buyers.
Udaan’s focus on strengthening its market penetration comes at a time when the domestic B2B e-commerce market is slated to experience significant growth in the coming years. According to reports by Avendus Capital, this sector is expected to surpass $125 billion in sales by 2027, growing at a compound annual growth rate (CAGR) of 45%. The newest funding comes just a month after the firm restructured its business – it received approval from the National Company Law Tribunal (NCLT) to consolidate its various business entities into a single entity, Hiveloop E-commerce Pvt Ltd, and further simplify its operational model.