B2B E-commerce Platform Udaan Secures $114 Million in Series G Funding
B2B e-commerce platform Udaan has completed its Series G funding round, successfully raising $114 million, spearheaded by M&G Investments and Lightspeed, along with both existing and new investors taking part.
Earlier in February, the Bengaluru-based firm acquired $75 million as the initial tranche of the Series G round, maintaining a stable valuation.
According to estimates from Startup Superb, Udaan was valued at approximately $1.8 billion in its previous funding round when it raised $340 million, led by M&G Plc, with contributions from Lightspeed and others.
The newly acquired capital will be utilised to enhance Udaan’s category and customer presence, particularly focusing on the fast-moving consumer goods (FMCG) sector and the hotel, restaurant, and catering (HoReCa) customer segment, as stated in a press release.
Udaan is also set to accelerate its initiatives for private label brands within the staples category. This capital influx will strengthen Udaan’s balance sheet, offering increased financial flexibility as the company prepares for its public market launch.
Vaibhav Gupta, co-founder and CEO of Udaan, mentioned that over the past three years, the firm has adapted by developing cost management as a core competency. The company has successfully decreased its EBITDA burn by 40% each year for the past three years and is on track to achieve full group EBITDA profitability within the next 18 months.
Udaan reports a remarkable growth of over 60% year-on-year (Y-o-Y) in CY 2024, alongside a contribution margin improvement exceeding 300 basis points. Additionally, through this margin growth and operational efficiency, Udaan has lowered its fixed costs by 20%, resulting in a 40% decrease in EBITDA burn for CY 2024, with another 20% reduction year-to-date in CY 2025.
Although Udaan has yet to reveal its FY25 figures, its gross merchandise value (GMV) rose only 1.7%, reaching Rs 5,706.6 crore in FY24, compared to Rs 5,609.3 crore in FY23. Despite this modest growth, the company managed to reduce its losses by 19.4%, amounting to Rs 1,674.1 crore during the same timeframe.