Udaan's E-commerce platform Funding Success

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Posted by NewAdmin on 2025-05-12 09:06:13 |

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Udaan, a leading Indian B2B e-commerce platform, has secured $340 million in a Series E funding round ahead of its anticipated 2025 initial public offering (IPO). The round was led by M&G Plc, a UK-based investment firm, with participation from existing investors Lightspeed Venture Partners and DST Global. The funding comprises a mix of fresh equity and the conversion of existing debt into equity.

Founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, Udaan connects over 3 million retailers with thousands of sellers across more than 1,200 cities in India. The platform offers a wide range of products, including lifestyle, electronics, home & kitchen, staples, FMCG, pharma, and general merchandise. Its logistics arm, udaanExpress, facilitates daily deliveries, enhancing supply chain efficiency for small and medium businesses. 

The newly acquired funds are earmarked to strengthen customer experience, expand market penetration, forge strategic vendor partnerships, and reinforce supply chain and credit capabilities. According to CEO Vaibhav Gupta, this capital infusion "fully funds our business plan" and positions Udaan to be "public-market ready in the next 12–18 months." 

While Udaan was valued at approximately $3.1 billion in its last equity round in 2021, the current funding round is considered a down round, reflecting a valuation below the previous peak. This adjustment aligns with broader market trends and the company's strategic focus on achieving profitability.

In a move to streamline operations ahead of the IPO, Udaan has consolidated its business units under Hiveloop Ecommerce Pvt Ltd, following approval from the National Company Law Tribunal (NCLT). This restructuring aims to enhance operational efficiency and align with the company's growth objectives. 

Udaan's successful funding round underscores investor confidence in its business model and growth trajectory, reinforcing its position as a key player in India's burgeoning B2B e-commerce sector.

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