B2B unicorn Udaan acquires Indore-based ShopKirana in all-stock deal

Bengaluru-based B2B unicorn Udaan has acquired Indore-based retail tech startup ShopKirana in an all-stock transaction, marking a significant step in the company’s path toward profitability and a planned public listing.

The acquisition will see Udaan acquire 100% of ShopKirana’s shareholding. According to media reports, ShopKirana’s shareholders, including its founders and key investors InfoEdge Ventures and Sixth Sense Ventures, are expected to collectively receive a 7 to 8% stake in Udaan.

“This acquisition is a strategic milestone in our journey to the IPO and beyond,” said Vaibhav Gupta, co-founder and chief executive officer of Udaan.

Founded in 2015, ShopKirana has built a strong supply and delivery infrastructure for kirana stores across Tier 2 and Tier 3 cities such as Indore, Bhopal, Agra, Meerut and Surat. The company also owns Kisan Kirana, a private-label brand focused on staples like rice, pulses and spices.

The acquisition allows Udaan to deepen its presence in key verticals such as fast-moving consumer goods (FMCG), staples, and the hotel, restaurant and catering (HoReCa) sector.

By integrating ShopKirana’s supply-chain relationships and credit infrastructure with its own, Udaan said it aims to improve unit economics, expand market reach, and optimise sourcing and logistics in high-frequency consumption categories.

The development follows Udaan’s recent $114 million Series G funding round, led by M&G Investments and Lightspeed Venture Partners. The company plans to deploy this capital to further strengthen its core verticals and reduce operational inefficiencies.

Founded in 2016, Udaan is among India’s largest B2B e-commerce platforms, operating across verticals including FMCG, pharma, fresh produce and staples. It also offers working capital solutions to retailers via its fintech arm, UdaanCapital.

Udaan’s revenue for the fiscal year ended March 2024 stood at Rs 5,706 crore, the highest among B2B commerce companies in India. ShopKirana reported Rs 643 crore in revenue, reflecting its narrower but deeper penetration in smaller city markets.

“This combination will further accelerate Udaan’s profitability journey by scaling high-turnover categories, improving operating leverage, and delivering differentiated value through data-driven logistics and infrastructure,” the company said.