B2B e-commerce firm Udaan has raised $75 million as part of its Series G funding round, with another $25 million expected in the coming quarter, co-founder and CEO Vaibhav Gupta told employees in a townhall today.
Valued at a flat $1.8 billion, this round was led by London-based global investment manager M&G Plc, with participation from existing investors, including Lightspeed Venture Partners. The Bengaluru-based company plans to use the fresh capital to enhance customer experience, deepen market penetration, strengthen strategic vendor partnerships, and bolster long-term capabilities in supply chain and credit.
The Economic Times was the first to report this development. Previously, Udaan secured Rs 300 crore in debt financing from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital in October last year to support its geographic expansion via its ‘micro-market strategy’ and renewed focus on profitability. Before that, the company raised $340 million in its Series E round led by M&G Plc, along with contributions from Lightspeed and DST Global.
Founded in 2016, Udaan currently collaborates with over 25,000 sellers and 30 lakh retailers across categories such as medicines, lifestyle and general merchandise, electronics, and FMCG goods, operating in 900 cities across the country. In January, Udaan received approval from the National Company Law Tribunal (NCLT) to consolidate its various business entities into a single entity, Hiveloop Ecommerce Pvt Ltd, in line with its plans to go public next year.
Additionally, in April last year, The CapTable reported that Udaan was considering discontinuing several categories—including electronics and fashion—amid top-level exits, including a founder leaving the company’s board. In FY24, the company reported a marginal rise in revenue to Rs 5,707 crore, following a decline from Rs 9,900 crore a year earlier to Rs 5,609 crore in FY23.
