IPO-bound Udaan raises $114 mn from existing backers M&G Investments, Lightspeed

Mint

6 days ago

Bengaluru: Business-to-business e-commerce company Udaan has secured $114 million in a Series G equity fundraising round led by existing backers M&G Investments and Lightspeed Venture Partners. The firm didn't disclose what it was valued at in this fundraising round.
The Bengaluru-based company plans to use the fresh capital to expand its range of products, with a focus on the fast-moving consumer goods (FMCG) and hotel, restaurant, and catering (HoReCa) segments. Its existing range of products include electronics, home & lifestyle, and pharmaceuticals.
Udaan will also accelerate its private label or in-house brands initiative in the staples category, the firm said in a press statement on Monday.
Udaan said it cut its Ebitda burn by 40% annually the last three years and is on track to achieve Ebitda profitability at the group level in 18 months. Ebitda, or earnings before interest, taxes, depreciation and amortisation, is a measure of core operational efficiency.
'Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage,' co-founder and chief executive Vaibhav Gupta said in the statement.
Founded in 2016, Udaan operates across the FMCG, staples, fruits and vegetables, and pharma categories through its nationwide network of retailers. Udaan also disburses financial products and services to small businesses, manufacturers, and retailers through udaanCapital, a financial technology platform focused on helping business customers meet their working capital requirements.
So far, Udaan has raised upwards of $1.95 billion, including $75 million that it secured in February from M&G Investments and Lightspeed in the first round of its Series G fundraise, as per market intelligence platform Tracxn.
Mint reported in April last year that Udaan's valuation was reduced by 44% to $1.8 billion in December 2023 when it secured $340 million in a Series E fundraising round, down from a $3.1 billion valuation in 2021.
Udaan, which is gearing up for a public market listing in 2026, said it clocked growth of over 60% in terms of contribution margin, which represents a product's profitability, in calendar year 2024.
strong contribution margin accretive growth, clocking 60%+ Year-on-Year (Y-o-Y) growth in CY 2024, alongside a 300+ basis point improvement in contribution margin.
The company also said it reduced its fixed costs by 20% in 2024, leading to a 40% reduction in Ebitda burn, and by an additional 20% so far in 2025. Udaan hasn't yet filed its financials for 2024-25 with the ministry of corporate affairs.
In FY24, Udaan's revenue from operations grew 1.7% year-on-year to ₹ 5,706 crore, while losses fell 19% to ₹ 1,674 crore. In January, Udaan received approval from the National Company Law Tribunal for consolidating its business entities into one entity, called Hiveloop E-Commerce, setting the path for an initial public offering (IPO) of its shares.