Udaan's S'pore Holding co faces insolvency proceedings over $170 mn default

B2B ecommerce firm says proceedings relate only to its offshore holding company as creditors seek liquidation over defaulted convertible notes

Global creditors of IPO-bound business-to-business (B2B) ecommerce company Udaan have reportedly initiated insolvency proceedings against Trustroot Internet Pvt. Ltd., the company's Singapore-based holding entity, after it defaulted on $170 million of compulsorily convertible notes that matured on June 30.

 

According to an Economic Times report, creditors have appointed Alvarez & Marsal as liquidator in insolvency proceedings before the Singapore High Court after failing to reach an agreement with the company on a debt restructuring package. They filed a winding-up petition on Tuesday.

 

Udaan, however, said the legal proceedings are limited to its offshore holding company and have no impact on its operations in India.

 

 

"The matters referenced relate to ongoing restructuring negotiations and offshore proceedings among offshore stakeholders at the offshore holding company level," the company said. "These discussions have no bearing on our operating entities in India, where our teams employ our people and run the day-to-day business."

 

The company said Udaan and UdaanCapital continue to operate as usual, serving customers across trade commerce and supply chain financing.

 

"We will continue to focus on delivering value to our customers, partners, employees and stakeholders," it said.

 

The Economic Times report also said lenders including JP Morgan, HSBC, DBS and Axis Bank have withdrawn working capital facilities in recent weeks, deepening Udaan's liquidity crunch. Bondholders had offered to extend the debt's maturity if the company secured fresh equity, but the talks reportedly failed.

 

According to the report, Udaan is working with Goldman Sachs to raise $150 million-$200 million in equity and is exploring a separate $40 million financing facility backed by pledged shares. It recently raised $50 million-$60 million from existing investors, including M&G Prudential and Lightspeed Venture Partners.

 

Backed by Lightspeed Venture Partners, DST Global and Tencent, Udaan has accumulated about Rs 13,000 crore in losses since its inception. Its FY25 revenue declined 20 per cent to Rs 4,561 crore, while net loss narrowed 37 per cent to Rs 1,055 crore, the report said.