PC: Business Standard
B2B e-commerce pioneer Udaan has been able to raise $75 million in a Series G equity funding round, led primarily by its largest investors, M&G Prudential and Lightspeed. This large sum of funding reflects the trust that these financial supporters have in Udaan’s business model and its future prospects. This news was announced by Udaan’s co-founder and CEO, Vaibhav Gupta, in a town hall gathering with employees.
Future Funding Plans
Apart from the existing funding, Udaan is looking to raise another $25 million in the coming quarter. This is with a view to strengthening the company’s balance sheet and its operational efficiency as it remains committed to profitability in the face of continued growth. Gupta emphasized the importance of this funding in shoring up the balance sheet and maximizing operations, particularly since the company has been on a steady growth path for the last few quarters.
Recent Financial Performance
Udaan’s funding is well-timed as the Bengaluru-headquartered firm looks to shore up its financials. In the last year, Udaan recorded flat revenue of ₹5,700 crore in FY24 while narrowing losses to ₹1,674 crore. During a recent interview, Gupta had pointed to a stellar 33% decline in absolute EBITDA burn between January and March 2024, showing considerable operational efficiency improvement.
Consolidation of Business Entities
Udaan recently obtained the clearance of the National Company Law Tribunal (NCLT) to merge its business entities. This tactical action is meant to consolidate its technology platform, distribution and logistics services, and wholesale trading under one business entity called Hiveloop Ecommerce. This consolidation will strengthen operational synergies and offer a unified service offering to customers.
Previous Funding Milestones
The latest round of funding comes on the heels of a string of successful financial moves by Udaan. In October 2024, the company had raised ₹300 crore of debt funding from several investors such as Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. In 2023, Udaan had raised $340 million in a funding round that was also led by M&G Prudential, signifying a robust support from its investors.
In summary, the new round of funding is a milestone achievement for Udaan as it further consolidates its position among the top B2B e-commerce players. With the plan to raise further funds and targeting profitability improvement, Udaan is well-placed to cope with the pitfalls of the shifting e-commerce terrain. With the consolidation of its operations and improved financial position, the company plans to deliver better services to its increasing customer base, ensuring long-term growth and success in the competitive market.
