The eB2B platform udaan, which is preparing for an IPO, announced on Tuesday that it has raised $160 million in a funding round. The funds were secured through the issuance of new equity and debt, as well as by converting existing debt into shares.
Deal Structure and Investors
The company stated in its announcement that the proposed transaction includes an injection of fresh capital from both existing shareholders and a new investor. Among the existing shareholders of udaan are M&G and Lightspeed Venture Partners, although the company did not specify who participated in the latest funding round.
Furthermore, udaan received a commitment of approximately $45 million from an unnamed global investment management firm. These funds, provided through the firm's private lending platform, are intended to strengthen the balance sheet of the Bengaluru-based company and stimulate its long-term growth.
Goals of Financial Restructuring
According to the statement, this deal should significantly strengthen udaan's balance sheet and simplify its capital structure, providing greater financial flexibility to support the next stage of company development and advance long-term plans for going public.
As part of the capital restructuring, some holders of existing convertible bonds will exchange part of their bonds for shares. The remainder of the outstanding convertible bonds will be extended under modified terms.
Management Comments and Company Activities
In a comment, Vaibhav Gupta, co-founder and CEO of udaan, noted that this funding round is another milestone on the company's path to building a sustainable, profitable, and institutionally sound business. He emphasized that over the past few quarters, the company has consistently improved operational performance, demonstrating healthy growth while significantly increasing profitability and cash efficiency.
Gupta added that with a stronger balance sheet and simplified capital structure, udaan is well-positioned for further investments in customer value, deepening market leadership, and moving toward long-term public market exit goals.
History and Areas of Operation
udaan was founded in 2016 and operates in technology services for supply chain and logistics, focusing on B2B trade. It works across various categories, including FMCG, staple foods, fruits and vegetables, and pharmaceuticals. Additionally, through its fintech subsidiary, udaanCapital, the company provides working capital and financial services to small businesses and retailers.
It is worth noting that in June 2025, the company raised $114 million (approximately 974 crore rupees) in a round led by M&G Investments and Lightspeed.
