B2B e-commerce platform Udaan has successfully secured $340 million in its latest Series E funding round, led by M&G Plc, with notable participation from Lightspeed Venture Partners and DST Global.
The funding includes a combination of equity and convertible notes, marking a strategic move for Udaan as it seeks to enhance its customer experience, expand market reach, forge strategic vendor partnerships, and reinforce the long-term capabilities of its supply chain and credit systems, according to a company press statement.
Udaan's co-founder and CEO, Vaibhav Gupta, expressed enthusiasm about the funding, stating, "It enables our continued journey of growth and profitability, positioning us well to be public-market ready in the next 12-18 months."
Although specific details about the valuation remain undisclosed, it's noted that the equity component is likely to reflect a more conservative valuation. Udaan had previously reached a peak valuation of approximately $3 billion.
Founded in 2016, Udaan specializes in streamlining supply chain and logistics operations, concentrating on B2B trade for daily deliveries across more than 1,200 cities through its udaanExpress service. The platform spans various sectors, including lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys, and general merchandise. Udaan boasts a substantial network, with over 3 million retailers and thousands of sellers actively engaged on the platform nationwide.
Despite a dip in gross revenue (GMV), which contracted by 43.1% to Rs 5,629 crore in FY23 from Rs 9,900 crore in FY22, Udaan demonstrated resilience with losses narrowing by 33.7% to Rs 2,076 crore in FY23 from Rs 3,132 crore in FY22, as per financial statements filed by its group company, Trustroot Internet in Singapore.
While Udaan experienced organizational restructuring last year, involving the laying off of around 500 employees across two phases, the company clarified that these actions were part of an efficiency enhancement initiative and not indicative of financial distress. Udaan remains focused on strategic growth, innovation, and fortifying its position in the dynamic B2B e-commerce landscape.
