B2B e-commerce platform Udaan has successfully raised approximately ₹300 crore (over $35 million) in debt financing, attracting investments from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. This marks Udaan’s first debt round in the last year, highlighting a significant step for the Bengaluru-based firm.
The fresh capital is aimed at bolstering Udaan’s balance sheet and furthering its commitment to empower small businesses throughout India, as stated in a recent press release.
In December 2023, Udaan completed a Series E funding round, securing $340 million led by M&G Plc, with participation from existing investors Lightspeed Venture Partners and DST Global. Despite this injection of funds, Udaan’s valuation fell by 59.3%, settling at $1.3 billion, a decrease from its previous peak of $3.2 billion.
Udaan has indicated that it is on track to achieve profitability, with a reported 60% surge in revenue and an over 50% increase in daily transacting buyers in 2024. The company has also noted a 30% reduction in absolute EBITDA burn for the current calendar year.
Founded eight years ago, Udaan operates a diverse marketplace that spans various categories, including lifestyle, electronics, home and kitchen goods, staples, fruits and vegetables, FMCG, pharmaceuticals, toys, and general merchandise. The platform boasts a network of over 3 million retailers across 900 cities.
In an effort to reduce costs, Udaan has implemented layoffs over the past year, including a reduction of more than 100 employees in December 2023.
While the company has not yet released its FY24 financials, it reported a 43.1% decline in gross merchandise value (GMV), which dropped to ₹5,629 crore in FY23, down from ₹9,900 crore in FY22. Nevertheless, Udaan has seen its losses decrease by 33.7%, falling from ₹3,132 crore in FY22 to ₹2,076 crore in FY23.