Udaan Raises USD 114 Mn in Series G Round Led by M&G and Lightspeed
The Bengaluru-based firm aims to deploy the fresh funds in expanding its presence in the FMCG and HoReCa (hotels, restaurants, and catering) sectors, boosting its private-label staples offerings, and strengthening its balance sheet to support its ongoing transformation.
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B2B ecommerce platform Udaan has raised USD 114 million in a fresh round of funding led by M&G Investments and Lightspeed Venture Partners, following the USD 75 million first tranche it secured in February. This marks a significant step in the company's Series G round, bringing it closer to its public market debut.
The Bengaluru-based firm announced that the newly raised funds will be directed toward expanding its presence in the FMCG and HoReCa (hotels, restaurants, and catering) sectors, boosting its private-label staples offerings, and strengthening its balance sheet to support its ongoing transformation. The company is doubling down on financial discipline and a margin-focused approach, critical in today's tighter investment climate.
"This fundraise is a vote of confidence in the disciplined, margin-focused model we've built over the past three years," said Vaibhav Gupta, Co-founder and CEO of Udaan. "We are on course to achieve full EBITDA profitability within the next 18 months."
Udaan was founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta. In less than a decade, the company has grown to become India's largest eB2B platform, servicing over 12,000 pin codes and offering a wide product range—including staples, pharma, fruits and vegetables, and electronics. Udaan now claims an estimated 70% market share in the eB2B space.
Udaan's pivot from a growth-at-any-cost model to disciplined execution has seen impressive results. It now operates under a cluster-led structure, empowering regional teams to drive localised efficiencies. This has helped the company report over 60% year-on-year revenue growth in 2024, a 300-basis-point increase in contribution margins, and a 20% reduction in fixed costs in early 2025.
Apart from its core marketplace, Udaan is also expanding its fintech vertical, UdaanCapital, which provides vital working capital solutions to small retailers and suppliers.
With nearly USD 2 billion raised to date, Udaan remains one of India's best-funded startups, and industry observers believe an IPO within 12 to 24 months is increasingly likely—contingent on continued performance in credit quality, logistics, and private-label profitability.
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