Udaan Experiences Significant Revenue Growth in FY26
Udaan has achieved a remarkable recovery with a revenue growth of 12.6% year-on-year in FY26, following a 20% decline in FY25. The company, based in Bengaluru, also reported a 19% reduction in losses, amounting to Rs 852 crore. Udaan’s gross merchandise value (GMV) rose from Rs 4,561 crore in FY25 to Rs 5,134 crore in FY26, as per consolidated financial statements filed by its group company, Trustroot Internet, in Singapore.
Company Background and Operations
Founded in 2016 by former Flipkart executives Vaibhav Gupta, Sujeet Kumar, and Amod Malviya, Udaan serves as a B2B ecommerce platform connecting brands and wholesalers with retailers. The company derives income from various sources including sales, logistics, platform fees, credit services, and advertising. Notably, Udaan’s GMV was approximately Rs 10,000 crore in FY22. The decline in GMV since then is attributed to Udaan’s strategic exit from non-core areas such as lifestyle and general merchandise, with a renewed focus on groceries and essential products.
Financial Performance Breakdown
On the cost side, Udaan’s material expenses escalated by 11.3%, increasing from Rs 4,367 crore in the previous fiscal to Rs 4,859 crore in FY26. Finance costs experienced a rise of 33.5%, reaching Rs 247 crore, while logistics expenses grew by 16.7%, totalling Rs 182 crore. However, employee benefit costs dropped significantly from Rs 500 crore in FY25 to Rs 347.5 crore in FY26, primarily due to a decrease in ESOP expenses from Rs 280 crore to Rs 140 crore.
Narrowing Losses and Future Expectations
The combination of robust revenue growth and reduced ESOP expenses allowed Udaan to cut its net loss by 19.2% from Rs 1,055 crore in FY25 to Rs 852 crore in FY26. This marks the fourth consecutive year of loss reduction, down from Rs 2,075 crore in FY23 and Rs 1,674.1 crore in FY24.
Strategic Acquisitions and Growth Moves
In September 2026, Udaan announced its intention to acquire Lynk Logistics, Swiggy’s retail distribution business, for Rs 500 crore, which will enhance its presence in key markets. Through this acquisition, Swiggy will receive a stake of approximately 2.8% in Udaan via preference shares and will invest an additional Rs 75 crore for a further 0.4% stake. This move is expected to bolster Udaan’s distribution capabilities through Lynk’s established brand partnerships and retail network.
Recent Developments in Investment
This March, Udaan’s parent company Trustroot acquired the entire 26.14% stake of Info Edge in Shopkirana for $32.97 million. In return, Info Edge received preference shares amounting to a 2.02% stake in Trustroot along with an added commitment of $1.72 million, thereby increasing its stake in Trustroot to 2.13% on a fully diluted basis.
Financial Strategies for Future Growth
Udaan has also engaged in a structured financing arrangement worth approximately $160 million as it aims to solidify its balance sheet and simplify its capital structure in anticipation of long-term public market initiatives. The company is actively preparing for a public listing and is projected to achieve profitability by late 2027 or early 2028 ahead of its planned IPO.