Udaan Raises $340 Million in Series E Round, Led by M&G Plc, to Boost B2B E-commerce Operations Udaan, the prominent B2B e-commerce platform, has successfully secured $340 million in a Series E funding round, led by M&G Plc, with participation from Lightspeed Venture Partners and DST Global. The funding round, comprising a mix of equity and convertible notes, aims to fuel Udaan’s expansion and fortify its position in the market.
The company, founded in 2016, plans to allocate the fresh capital towards enhancing customer experience, expanding market reach, establishing strategic vendor partnerships, and strengthening long-term capabilities in supply chain and credit management, according to a press statement released by Udaan.
Vaibhav Gupta, Udaan’s co-founder and CEO, expressed optimism about the company’s growth trajectory, stating, “It enables our continued journey of growth and profitability, positioning us well to be public-market ready in the next 12-18 months.”
Although the valuation of Udaan following this round has not been officially disclosed, it is suggested that the equity component might have been on a lower valuation compared to its peak valuation of around $3 billion.
Udaan’s business model revolves around facilitating supply chain and logistics operations, with a specific focus on B2B trade for daily delivery spanning over 1,200 cities through udaanExpress. The platform caters to a diverse range of sectors, including lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys, and general merchandise. Udaan boasts a substantial user base, with over 3 million retailers and thousands of sellers across the country.
While the platform experienced a 43.1% decline in gross revenue (GMV) to Rs 5,629 crore in FY23 from Rs 9,900 crore in FY22, it managed to narrow its losses by 33.7% to Rs 2,076 crore in FY23 from Rs 3,132 crore in FY22, as per financial statements filed by its group company, Trustroot Internet, in Singapore.
Despite facing challenges such as layoffs of around 500 employees in the previous year, Udaan clarified that these actions were part of an efficiency enhancement drive and not indicative of financial desperation. The latest funding round underscores investor confidence in Udaan’s potential and its strategic approach to navigating the B2B e-commerce landscape.
