 "Udaan raises $114 mn from M&G Investments, Lightspeed ahead of planned IPO")
Udaan, India’s largest business-to-business (B2B) e-commerce platform, has raised $114 million in fresh equity funding as part of its Series G round, the company announced on Monday.
The financing was led by M&G Investments and Lightspeed, with participation from a mix of existing and new investors. The company’s valuation remains unchanged at approximately $1.8 billion. However, the round highlights growing investor confidence in Udaan’s long-term business model and its trajectory toward a public market debut.
Udaan said it will use the capital to expand its footprint in key product categories and customer segments, with a particular focus on fast-moving consumer goods (FMCG) and the Hotel, Restaurant, and Catering (HoReCa) sector. The company also plans to accelerate its private-label initiatives in the staples category—an essential part of its strategy to drive margin improvements.
The latest funding is expected to strengthen Udaan’s balance sheet, providing greater financial flexibility as it prepares for an initial public offering (IPO).
“Over the last three years, we have transformed the business by building cost as a capability and a competitive advantage. We have reduced our EBITDA (earnings before interest, taxes, depreciation, and amortisation) burn by 40 per cent every year for the last three years and are on track to achieve full group EBITDA profitability in the next 18 months,” said Vaibhav Gupta, co-founder and CEO of Udaan.
“Our hybrid model of a highly available e-commerce app plus new-gen tech-first sales is now established as the benchmark winning model for eB2B. It provides ROI-accretive customer wallet growth and a strong solution for brands and manufacturers to drive product mix,” he added.
As part of its long-term vision, Udaan said it is focused on achieving “consistent growth with profitability at scale” through a regional cluster-led operating model, reinforcing its commitment to building a sustainable and scalable business.
Udaan continues to demonstrate strong, contribution-margin-accretive growth, posting over 60 per cent year-on-year (YoY) growth in CY2024, along with a 300+ basis point improvement in contribution margin. This momentum has carried into CY2025, with an additional 100+ bps improvement year-to-date. In addition, Udaan has reduced its fixed costs by 20 per cent, resulting in a 40 per cent reduction in EBITDA burn in CY2024 and a further 20 per cent reduction so far in CY2025.
Founded in 2016, Udaan connects small retailers with manufacturers and wholesalers through its digital platform, streamlining India’s fragmented retail supply chain. The firm has raised more than $1.95 billion to date, according to data platform Tracxn.
Udaan competes with players such as Amazon, Flipkart, and Reliance’s JioMart in the B2B e-commerce space. This segment is expected to surpass $125 billion in sales by 2027, growing at a compound annual growth rate of 45 per cent, according to a report by Avendus Capital.
The company’s revenue reached ₹5,700 crore in FY2023–24, while it reduced EBITDA burn by 36 per cent year-on-year to ₹923 crore.