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Fashion Network
2 days ago
- 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."
Entrepreneur
2 days ago
- Business
- Entrepreneur
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. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. 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.
Hans India
3 days ago
- Business
- Hans India
Udan secures $114 mn from M&G, Lightspeed
Udan secures $114 mn from M&G, Lightspeed eB2B platform Udanhas raised $114 million (about Rs 974 crore) in fresh equity capital in a funding round led by M&G Investments and Lightspeed. The funds will be used to expand udan's presence across categories and customers, particularly targeting the Fast-Moving Consumer Goods (FMCG) sector and the Hotel, Restaurant, and Catering (HoReCa) segment, according to a company statement. "Udanwill also accelerate its private label brands initiatives in the staples category. This capital raise will also fortify udan's balance sheet, providing enhanced financial flexibility as the company advances toward its public market debut. "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 per cent every year for the last 3 years and are on track to achieve full group EBITDA profitability in the next 18 months," Vaibhav Gupta, Co-founder and CEO, udaan, said. With a network of retailers, suppliers, and brands nationwide, Udanenables supply chain and logistics operations, driven by technology and focused on B2B trade.
Time of India
3 days ago
- 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
Economic Times
3 days ago
- Business
- Economic Times
Udaan's flat raise; Nykaa's market woes
B2B ecommerce unicorn Udaan raised fresh funds in a round led by existing investors. This and more in today's ETtech Top 5. Also in the letter: ■ Tesla 'not' driving into India■ Infosys CEO payout■ Fintech sector: Road ahead Udaan closes latest funding round at $114 million led by UK's M&G, Lightspeed Vaibhav Gupta, CEO, Udaan B2B ecommerce platform Udaan has raised $114 million in a fresh funding round led by existing investors, M&G Prudential (UK) and Lightspeed Venture Partners. Round details: The round closed at a flat valuation of $1.8 billion and includes the previously disclosed $75 million investment from the same two investors, which founder and CEO Vaibhav Gupta announced at a town hall earlier this year. The new capital will go towards deepening Udaan's footprint in key sectors like fast-moving consumer goods (FMCG) and the hotel, restaurant, and catering (HoReCa) industry. The company also plans to expand its private label brands, with a sharper focus on staples. What else? 'We have cut our Ebitda losses by 40% every year over the past three years and are on course to reach full group Ebitda profitability within the next 18 months,' said Gupta. Quick lookback: Udaan's valuation fell by 44% in 2023 to around $1.8 billion, down from its $3.2 billion peak following a funding round in January 2021. The company restructured its debt late last year but continues to carry about $100 million in liabilities, with repayments pushed to later dates. Nykaa shares drop 5% as muted fashion growth weighs on strong Q4 Shares of FSN E-commerce, the parent company of Nykaa, slipped as much as 5.11% to 192.85 a piece during Monday's trade. The scrip closed 4.33% lower at Rs 194.45, underperforming the benchmark Sensex, which dipped just 0.09%. Driving the news: A strong Q4 failed to lift investor sentiment. Operating revenue : Rs 2,061.7 crore, up 27% from Rs 1,668 crore a year earlier. Rs 2,061.7 crore, up 27% from Rs 1,668 crore a year earlier. Net profit : Rs 19 crore, versus Rs 9 crore last year. : Rs 19 crore, versus Rs 9 crore last year. Beauty segment: Rs 1,895 crore, up 24.7% from Rs 1,519 crore. Rs 1,895 crore, up 24.7% from Rs 1,519 crore. Fashion segment: Rs 161 crore, up 11% from Rs 145 crore. Also Read: Nykaa Q4 profit doubles to Rs 19 crore; revenue up 24% Source: Google Finance Fashion lacks glitz: Analysts flagged the fashion vertical's subdued performance in their post-results commentary. The segment's contribution margin dropped to 5.6% during Q4, down from 14.4% in the previous year. Kotak Institutional Equities trimmed profitability estimates on expected higher ad spends in the fashion segment. Analystspeak: "While BPC (beauty and personal care) segment continues to deliver healthy growth with better profitability, revival in fashion business remains a key monitorable, given the heightened competitive intensity across the industry," said brokerage house Nuvama in a note on Monday. Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and employees. The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Interested? Reach out to us at spotlightpartner@ to explore sponsorship opportunities. Infosys paid CEO Salil Parekh Rs 80.62 crore as salary in FY25, up 22% Salil Parekh, CEO, Infosys Infosys chief executive officer (CEO) Salil Parekh received a 22% hike in annual compensation for the financial year ending March 2025, with total pay rising to Rs 80.6 crore, according to the company's latest annual report. CEO's payslip: Parekh's salary was structured as follows: Base salary: Rs 7.45 crore Rs 7.45 crore Retiral benefits: Rs 49 lakh Rs 49 lakh Variable pay: Rs 23.18 crore Rs 23.18 crore Stock options: Rs 49.5 crore The jump in compensation was driven by higher bonuses, incentives, and variable payouts, along with an increase in restricted stock units (RSUs), equity-linked grants linked as part of long-term earned Rs 66.25 crore in FY24, a 17.5% increase over the previous year, making him the second highest-paid CEO in the Indian IT sector at the time. His pay had dipped in FY23 to Rs 56 crore from Rs 71 crore in FY22. Peers' pay packages: With the FY25 figures, Parekh's pay now surpasses that of his counterparts at Tata Consultancy Services (TCS) and Wipro. Wipro chief Srinivas Pallia earned $6.2 million (around Rs 53.64 crore), a 10% bump over last year. TCS chief K Krithivasan saw his compensation rise 4.6% to Rs 26.5 crore. Tesla unlikely to make in India, will focus only on imports: All you need to know Elon Musk, CEO, Tesla Despite the Indian government's generous policy incentives, the Elon Musk-led EV giant Tesla, remains hesitant to manufacture in India, preferring instead to sell imported vehicles through showrooms, according to union minister HD Kumaraswamy. But why? India's price-sensitive market, high import duties, and Tesla's direct-to-customer sales model pose major hurdles. Even the company's most affordable offering, the Model 3, would be classified as a luxury vehicle in India due to current import tariffs. Still, Tesla hasn't shut the door. We reported in February that the company has secured retail space in Maharashtra and Delhi, and has posted job openings, moves that hint at plans to establish a sales footprint. India's move: The government is gearing up to formally launch its flagship EV policy, the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). Under this scheme, automakers that commit at least $486 million to local manufacturing could see import duties slashed to 15%, down from the existing 70%. Others revving up: While Tesla holds back, other global automakers are accelerating plans. Kumaraswamy said Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia have shown strong interest in setting up EV manufacturing under the new policy. Where the fintech sector is headed next: QED-BCG Global Fintech Report 2025 Fintechs still account for just 3% of global banking and insurance revenues, but their influence is growing rapidly, according to QED–BCG Global Fintech Report. In numbers: Fintech revenues rose 21% year-on-year, sharply outperforming the broader financial services sector, which grew by just 6%. Public fintechs are also turning the corner on profitability; 69% are now in the black, up from less than half the previous year. Growth engines: The report sees agentic artificial intelligence (AI) as a long-term game changer. Financial activity on the blockchain is picking up pace, but still has structural hurdles to clear. Challenger banks, born digital, would do well to focus on deepening their presence in existing markets. Fintechs are now better at lending and have more seasoned customer data. The big unknown: will these lending models hold during a full economic downturn? B2B(2X), infrastructure, and lending are shaping up as the sector's next major frontiers. Quote, unquote: 'Regulators are now internalising that fintech is here to stay,' QED Investors cofounder Nigel Morris told ET in an exclusive interview. Fintechs have a role to play in the future of how financial services are delivered, he added. Updated On Jun 02, 2025, 07:43 PM IST
