Bengaluru-based B2B ecommerce platform Udaan has announced a structured financing transaction of about $160 million, combining fresh equity, new debt and debt-to-equity conversion. The transaction is designed to strengthen the company’s balance sheet, simplify its capital structure and address debt obligations as it continues preparing for a potential public-market path.
The financing includes fresh equity from existing investors and a new investor, debt from BlackRock’s credit platform, and conversion of a portion of outstanding convertible bonds into equity. About $45 million is expected to come as debt from BlackRock’s private-credit platform, while existing investors Lightspeed and M&G Prudential are expected to invest roughly $50-60 million in fresh equity. The remaining amount is tied to bondholder conversion and revised terms on outstanding obligations.
The development follows pressure from offshore creditors, who had initiated insolvency proceedings against Udaan’s Singapore-based parent over defaulted convertible notes. The new financing and restructuring framework is aimed at resolving that overhang while giving the company additional room to execute its operating plan. Udaan has said the transaction will help simplify the balance sheet and support the business as it works through its next phase.
Udaan’s model connects manufacturers, wholesalers, retailers and small businesses across categories such as staples, FMCG, electronics and general merchandise. The company has spent recent years recalibrating after the wider startup funding correction forced large ecommerce and B2B marketplace companies to focus on profitability, working capital discipline and capital efficiency. For a business serving small merchants and distribution networks, financing structure is especially material because credit cycles, inventory flows and vendor relationships shape day-to-day execution.
The structured round also illustrates how late-stage Indian startups are increasingly relying on hybrid financing rather than simple equity rounds. Debt conversion, private credit and existing-investor participation are becoming part of recapitalization playbooks for companies that raised aggressively in earlier cycles and now need cleaner balance sheets before pursuing IPOs or strategic alternatives.
Udaan’s latest transaction does not remove all execution challenges. The company still operates in a competitive and margin-sensitive B2B commerce market. However, the financing gives management a clearer route to stabilize obligations, preserve operating continuity and rebuild investor confidence around a more disciplined capital structure.
