Udaan, the business-to-business (B2B) e-commerce firm, has secured $75 million in fresh funding from existing investors UK-based M&G Prudential and Lightspeed, CEO Vaibhav Gupta told employees in a town hall on Monday.
He also mentioned that the company is in advanced discussions to close an additional equity round of $25 million from potential investors in the coming quarter, added the sources.
Udaan plans to utilise the funds to further enhance customer experience, deepen market penetration, strengthen strategic vendor partnerships and bolster long-term capabilities in supply chain and credit, according to sources.
The company has raised funds at valuation of around $1.8 billion. udaan had raised funds in 2023 at the same valuation.
Last month, the company received approval from the National Company Law Tribunal (NCLT) for the consolidation of its various business entities into a unified entity – Hiveloop Ecommerce Pvt Ltd. This approval is a major step towards udaan’s plans for becoming a public listed company.
udaan has been navigating a challenging funding environment, focusing on cost optimisation and improving its unit economics. The company had raised ₹300 crore in debt financing from Lighthouse Canton, Stride Ventures, InnoVen Capital and Trifecta Capital in October last year. The funds were raised to fund its geographic expansion through its ‘micro-market strategy’ as it renewed its focus on profitability. Before that, it secured $340 million in its Series E financing round led by M&G Plc, along with existing investors Lightspeed and DST Global.
Founded in 2016, the company has over 25,000 sellers and 30 lakh retailers across categories like medicines, lifestyle and general merchandise, electronics, and FMCG goods. It is currently available cross 900 cities in the country.
In FY24, Udaan reported a marginal rise in revenue to ₹5,707 crore compared to ₹5,609 in FY23.
