B2B startup Udaan raises $75 million in funding, to raise additional funding later: Report

Bengaluru-based B2B ecommerce unicorn Udaan has reportedly raised $75 million in a Series G equity funding round at a flat valuation.

According to the Business Standard report, the funding has been raised at a valuation of $1.5 billion to $1.8 billion. The latest round was led by M&G Plc, with participation from existing investors, including Lightspeed Venture Partners.

Raising an additional $25 million

The report further said that CEO Vaibhav Gupta has informed the employees about the funding while addressing them in a town hall and that the company is also planning to close an additional equity round of $25 million from potential investors in the coming quarter.

Strengthening customer reach and supply chain

Udaan reportedly plans to use the new funds to improve customer experience, widen its market presence, strengthen partnerships with vendors, and enhance its supply chain and credit infrastructure. 

This strategic focus follows the company’s earlier fundraises, including a $340 million round in December 2023 and Rs 300 crore (more than $35 million) in debt funding in October 2024. In total, Udaan has now raised about $1.9 billion in debt and equity.

Corporate consolidation and public listing plans

Last month, Udaan received approval from the National Company Law Tribunal to merge its various business entities under Hiveloop Ecommerce Pvt Ltd.

This consolidation is seen as a significant step toward Udaan’s goal of becoming a publicly listed company. By unifying its operations, the company aims to simplify processes and improve efficiency.

Udaan reported a modest 1.7% increase in gross revenue (GMV) to Rs 5,706.6 crore for the fiscal year ending March 2024, up from Rs 5,609.3 crore in the previous year.

The company, however, managed to reduce its losses by 19.4% to Rs 1,674.1 crore. It also reported strong growth in daily transacting buyers, a 20% increase in buyer wallet share, and a monthly repeat ratio of more than 90%.

According to Udaan, it improved its gross margins by 200 basis points and contribution margins by 300 basis points, alongside a 30% reduction in absolute EBITDA burn.