Writer: Tabish
Description: Corporate marketplace Udaan has raised $120 million in convertible bonds and bonds led by existing shareholders and bondholders, the company’s CFO told employees in an internal report.
In this round, the total amount raised by Udaan through convertible bonds and debt over the past four quarters has exceeded $350 million, making it one of the largest structured product fundraisers in the United States.
“Despite the funding-related challenges being experienced by the larger start-up ecosystem, this fundraise reflects the confidence of investors in our business model and their endorsement of the journey to unit economics, driven by great progress in the evolution of our business model and cost efficiency, that we initiated last year,” stated from Aditya Pande, chief financial officer at Udaan.
The company plans to go public in the next 12 to 18 months. In January of this year, the company raised $250 million, including $200 million in short-term debt and $50 million in debt that could be converted into convertible bonds or later into stock.
Microsoft participated in the company’s fundraiser in April of this year. A $225 million round was raised with investors such as M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samena Capital, and Ishana Capital.
Founded in 2016 by former Flipkart employees Amod Malviya, Sujit Kumar, and Vaibhav Gupta, Udaan provides a collaborative platform for sellers, wholesalers, retailers, and manufacturers to discover and interact with customers, suppliers, and products by category, the other direction at the lowest price.
The company has investors such as Octahedron Capital, Moonstone Capital, Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital, and Tencent. In January 2021, the company raised $280 million in equity financing rounds and has raised over $1.5 billion in equity and debt to date.
