B2B Ecommerce Platform Udaan Secures $160 Million Financing

B2B ecommerce platform Udaan has successfully completed a structured financing deal totaling approximately $160 million. This includes new equity, fresh debt, and the conversion of debt to equity, as the company aims to fortify its balance sheet and streamline its capital structure in preparation for long-term public market aspirations.

Details of the Financing Transaction

As outlined by Udaan, existing shareholders and a new investor will be contributing additional equity to the Bengaluru-based firm. Furthermore, some current convertible bondholders will transition a portion of their outstanding bonds into equity, while the rest of the bonds will be renewed under updated terms.

Investment Commitment

In this financing arrangement, one of the leading investment management firms has pledged approximately $45 million via its private credit platform. This infusion will provide fresh debt financing, though the identity of the investor remains undisclosed.

Impact on Udaan’s Financial Health

Udaan asserts that this financing will significantly bolster its balance sheet, enhance financial flexibility, and simplify its capital structure as it moves closer to readiness for the public market.

The company indicated that over a span of 10 quarters, from Q4 CY23 to Q1 CY26, its revenue has increased at a CAGR of around 25%. Additionally, contribution margins have improved by nearly 500 basis points, and EBITDA burn has decreased by approximately 70%. Notably, Udaan’s key operating cities have attained EBITDA profitability, and its private label portfolio contributes 15% to 25% of staple sales across these regions, thereby enhancing margins and operational leverage.

Statements from Leadership

Udaan’s co-founder and CEO Vaibhav Gupta remarked that this financing round marks a significant milestone in the company’s journey toward establishing a sustainable, profitable, and institutionally resilient business. He further stated that a more robust balance sheet and simplified capital structure will empower Udaan to keep investing in customer value while progressing toward its long-term public market goals.

Recent Developments

This latest financing occurs just over a year after Udaan completed its $114 million Series G funding round in June 2025, which was spearheaded by M&G Investments and Lightspeed, along with contributions from various existing and new investors.

Since then, Udaan has accelerated its preparations for a public listing. In March of this year, the company allegedly initiated a reverse flip from Singapore to India.

Earlier in July 2025, Udaan made headlines by acquiring retail tech startup ShopKirana in an all-stock deal, representing one of the largest consolidation actions in India’s B2B ecommerce industry. This acquisition has broadened Udaan’s presence in the kirana sector and reinforced its foothold in vital markets.