B2B e-commerce unicorn Udaan has raised $114 million in an extended Series G funding round led by M&G Investments and Lightspeed Venture Partners, with participation from both existing and new investors.
Moneycontrol had reported in February that Udaan was raising $75 million in a Series G round led by M&G Plc, with Lightspeed also participating. The latest capital raise marks the closure of that round, after the company secured additional funds.
Udaan said the fresh capital will be used to deepen its presence in fast-moving consumer goods (FMCG) and the HoReCa (Hotel, Restaurant, and Catering) segment, expand its private label brands in staples, and strengthen its balance sheet ahead of a potential public listing.
The company claims to have seen over 60 percent year-on-year growth in calendar year 2024, alongside a 300+ basis point improvement in contribution margin. In 2025 so far, it has reported an additional 100 basis point margin gain, a 20 percent cut in fixed costs, and a further 20 percent reduction in EBITDA burn, following a 40 percent decline in 2024.
Co-founder and CEO Vaibhav Gupta said Udaan is on track to achieve full group EBITDA profitability within the next 18 months. “We have reduced our EBITDA burn by 40% every year for the last 3 years,” he said.
Founded in 2016, Bengaluru-based Udaan claims about 70 percent share in India’s B2B e-commerce space and operates across FMCG, staples, pharma, and fresh produce.
The company’s last major funding round came in December 2023 when it had raised as much as $340 million, in a round also led by M&G and Lightspeed. It had also raised Rs 300 crore in debt financing from investors like Lighthouse Canton, Stride Ventures, and InnoVen Capital, among others, in October last year.
Udaan, in January, received approval from the National Company Law Tribunal (NCLT) to consolidate its business verticals under a single entity – Hiveloop Ecommerce – as the company prepares for an initial public offering (IPO) expected by the end of 2025 or early next year.
As such, the firm has been on a cost cutting spree, including trimming its workforce, to improve unit economics. In FY24, the company cut its losses by 19 percent to Rs 1674.1 crore, compared to Rs 2075.9 crore in FY23. It, however, also reported flat revenue growth of 1.7 percent to Rs 5,706.6 crore during year.
The current funding round notwithstanding, Udaan has raised a total funding of $1.95 billion from investors such as M&G Plc, Lightspeed Venture Partners, and DST Global. The company is currently has a valuation of about $1.8 billion, according to market intelligence platform Tracxn.
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