• Udaan raised $114 million from M&G Investments and Lightspeed Venture Partners, bringing total funding to nearly $2 billion.
  • The company has reduced its EBITDA burn by 40% annually over the past three years and aims for profitability within 18 months.

Bengaluru-based B2B e-commerce platform Udaan has secured $114 million (over ₹970 crore) in fresh equity financing from existing investors M&G Investments and Lightspeed Venture Partners. This latest infusion brings the company’s total capital raised to nearly $2 billion, supporting its ambitions for a public listing in 2026.

The round is part of Udaan’s ongoing Series G fundraise. While the company did not disclose its current valuation, media sources indicate that it remains steady at approximately $1.8 billion. The announcement comes just months after the company raised $75 million from the same investors earlier this year.

Founded in 2016, Udaan connects manufacturers and wholesalers to small retailers across India, operating in diverse sectors such as FMCG, lifestyle, electronics, pharmaceuticals, and agriculture. With the new funds, the company plans to expand in high-volume categories, especially FMCG and HoReCa (hotel, restaurant, catering), where it sees significant potential in both scale and margins.

The company is also strengthening its private-label offerings, particularly in staples. Udaan noted a 60% YoY growth in contribution margin in 2024, with a 300-basis-point improvement, and an additional 100-bps improvement in 2025 so far.

Co-founder and CEO Vaibhav Gupta said the company has slashed its EBITDA burn by 40% annually over the past three years and is targeting EBITDA profitability at the group level within 18 months.

"We have transformed the business by building cost as a capability and a competitive advantage," he noted.

In FY24, Udaan’s revenue rose 1.7% to $667 million (₹5,706 crore), while net losses narrowed by 19% to $195.9 million (₹1,674 crore). Fixed costs have been reduced by 20% last year and again by 20% this year.

Its fintech arm, udaanCapital, continues to grow, offering credit and working capital loans to small merchants. In January, Udaan received approval to consolidate its various entities under Hiveloop E-Commerce, simplifying its structure ahead of the IPO.

India's B2B e-commerce market is projected to exceed $125 billion in GMV by 2027, according to Avendus Capital.

Edited by Harshajit Sarmah