Latest news with #M&GInvestments
Fashion Network
03-06-2025
- Business
- Fashion Network
Udaan raises $114 million to strengthen FMCG offering
Business-to-business e-commerce platform Udaan has raised $114 million (approximately Rs 974 crore) in a fresh equity round, with M&G Investments and Lightspeed among the key investors. The capital will be used to expand operations across core product categories, with a strong emphasis on fast-moving consumer goods and the hotel, restaurant, and catering sector. The company also plans to accelerate its private label brands in staples and bolster its balance sheet ahead of a potential public listing, Indian Retailer Bureau reported. In a statement, Udaan said the fundraise will help to drive consistent growth with profitability at scale under its regional cluster-led operating model, ET Retail reported. The investment comes as Udaan reports significant operational gains, including a 20% reduction in fixed costs and a 40% decline in EBITDA (earnings before interest, tax, depreciation, and amortisation) burn in 2024. The company noted an additional 20% reduction in burn so far in 2025. Udaan currently connects retailers, suppliers, and brands across India through a tech-driven B2B platform focused on streamlining commerce and logistics, according to its website. 'Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage," said Udaan's co-founder and CEO Vaibhav Gupta, Indian Retailer Bureau reported. "We have reduced our EBITDA burn by 40 per cent every year for the last three years and are on track to achieve full group EBITDA profitability in the next 18 months."
Time of India
02-06-2025
- Business
- Time of India
B2B e-commerce startup Udaan raises $114mn
BENGALURU: B2B ecommerce platform Udaan raised $114 million, led by M&G Investments and Lightspeed. The Bengaluru-based company said the funds will be used to deepen its category presence, particularly in FMCG and staples. Udaan secured the latest funding at a valuation of about $1.8 billion (unchanged), people familiar with the matter told TOI. The company previously raised $340 million in 2023, led by UK-based M&G Prudential, at the same valuation, marking a notable decline from its peak valuation of $3.2 billion in 2021. The company said it posted over 60% year-on-year revenue growth in 2024. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
02-06-2025
- Business
- Time of India
Udaan raises $114 million in flat round at $1.8 billion valuation
Representative image BENGALURU: B2B ecommerce platform Udaan has raised $114 million in fresh equity capital as part of its Series G funding round, led by M&G Investments and Lightspeed. The round also saw participation from existing and new investors. The Bengaluru-based company said the funds will be used to deepen its category presence, particularly in FMCG and staples, and expand further into underserved markets. Udaan has secured the latest funding at a valuation of about $1.8 billion, people familiar with the matter told TOI. This makes the funding a flat round, which is when a company's valuation remains the same or nearly the same as the previous funding round. The company had previously raised $340 million in 2023, led by UK-based M&G Prudential, at the same valuation, marking a notable decline from its peak valuation of $3.2 billion in 2021. Founded by former Flipkart executives Vaibhav Gupta, Amod Malviya, and Sujeet Kumar, Udaan has been restructuring its operations since 2022, focusing on profitability amid a more cautious funding environment. The company has reduced its operating scale to manage costs and streamline business priorities. Malviya and Kumar no longer oversee day-to-day operations, with Gupta currently serving as CEO. The latest financing, Udaan said, strengthens its balance sheet as it moves closer to a potential public market listing. This round follows a broader restructuring of the business over the last three years, with the company claiming a 40% annual reduction in Ebitda burn over the same period. Founded in 2016, Udaan operates across verticals including fast-moving consumer goods, pharma, staples, and fresh produce, and claims to hold around 70% of India's eB2B market share. The company said it is pursuing a cluster-led operating model to drive 'profitable growth at scale,' with emphasis on technology-led distribution and private label expansion in staples. The company said it posted over 60% year-on-year revenue growth in calendar year 2024. Contribution margins improved by more than 300 basis points during the year, with an additional 100 basis point gain reported year-to-date in 2025. Fixed costs, the company said, were cut by 20% last year, contributing to overall margin improvements. 'This funding marks a key milestone as we continue our journey towards public markets,' said Vaibhav Gupta, co-founder and CEO of Udaan. 'Our hybrid model combining a digital platform with tech-led sales is proving effective, and we are on track to achieve group-level Ebitda profitability within the next 18 months.' The fresh capital will also be deployed to enhance Udaan's technology stack, including customer engagement tools and sales-tech capabilities. The company currently serves a large network of small businesses, retailers, and suppliers across India, and also offers working capital solutions through its financial services arm, UdaanCapital. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
02-06-2025
- Business
- Time of India
Udaan raises USD 114 million in Series G funding
New Delhi: Bengaluru-based B2B e-commerce platform Udaan has raised USD 114 million in equity capital. The Series G funding round was led by M&G Investments and Lightspeed Venture Partners , with participation from both new and existing investors, the company said in a press release on Monday. According to the company, the fresh capital will be utilized to strengthen Udaan's presence in the fast-moving consumer goods (FMCG) sector and the hotel, restaurant, and catering (HoReCa) segment. Also, the company plans to accelerate its private label initiatives in the staples category. The funds will also bolster Udaan's balance sheet, providing enhanced financial flexibility as it advances toward a potential public listing. 'Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage. We have reduced our EBITDA burn by 40% every year for the last 3 years and are on track to achieve full group EBITDA profitability in the next 18 months. Udaan's hybrid model of 'highly available eCom app + new-gen tech-first sales' is now established as the benchmark winning model for eB2B, providing an ROI accretive customer wallet growth, and a strong solution for brands and manufacturers to drive product mix,' said Vaibhav Gupta, co-founder and CEO, udaan. The company has been focusing on achieving profitability at scale, implementing a regional cluster-led operating model. The etailer claimed to have reported a 60 per cent year-on-year growth in calendar year 2024, alongside a 300 plus basis point improvement in contribution margin.
Mint
02-06-2025
- Business
- Mint
IPO-bound Udaan raises $114 mn from existing backers M&G Investments, Lightspeed
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.
