SUMMARY
- Udaan raised ₹300 Cr in debt funding from Lighthouse Canton, Stride Ventures, InnoVen, and Trifecta Capital.
- Despite a valuation drop, Udaan grew revenue by 60% and daily transacting buyers by 50% in 2024.
- Udaan achieved a 30% reduction in EBITDA burn, moving closer to profitability.
Updated: October 24, 2024
The Business-to-business (B2B) e-commerce platform Udaan has secured debt capital from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital totaling about ₹300 crore ($35 million).
According to a press statement from the company, the new funding would help Udaan’s aim of supporting small companies throughout India while also strengthening its balance sheet.
The Bengaluru-based startup has raised its first round of debt in the last 12 months. With the help of current equity investors Lightspeed Venture Partners and DST Global, the company received $340 million in a Series E round in December 2023, which was led by M&G Plc.
Despite the financial boost this round gave Udaan, its valuation fell by 59.3%, from a peak of $3.2 billion to a current estimate of $1.3 billion.
The firm reports a 60% growth in revenue and more than a 50% increase in daily transacting buyers in 2024, indicating that the company is on pace to become profitable. Additionally, Udaan reported a 30% decrease in the current year’s absolute EBITDA burn.
Original: October 23, 2024
Udaan, a unicorn in B2B e-commerce, is in talks with M& G Prudential to raise $80-100 million in a new capital round.
According to sources cited by ET, M& G’s ownership in Udaan will increase from its current 15% interest after the deal is closed.
According to the research, M& G Prudential is in second place while Lightspeed Venture Partners has the largest ownership share in the business. The money will be at a flat valuation of $1.8 billion, according to sources who also verified that the term sheet has been signed and that the deal’s details are being finalized.
The Vaibhav Gupta, Sujeet Kumar, and Amod Malviya-led Udaan were founded in the year 2016. The firm facilitates logistics and supply chain activities aimed at business-to-business (B2B) trading. Through udaanExpress, the firm says it can deliver goods every day to more than 1,000 cities and 12,500 pin codes.
In FY23, the company’s operating revenue stood at ₹5,609.3 crore, reflecting a 43% decline from the previous year. Its gross revenue (GMV) also dropped by 43.1% to ₹5,629 crore from ₹9,900 crore in FY22. Despite these declines, Udaan’s losses contracted by 33.7%, amounting to ₹2,076 crore compared to ₹3,132 crore in FY22.
