Udaan acquires ShopKirana to give boost to FMCG play, profitability ahead of IPO

Udaan acquires ShopKirana to boost FMCG play, profitability ahead of IPO

B2B e-commerce platform Udaan has acquired Indore-based ShopKirana in an all-stock deal to sharpen focus on profitable growth, expand reach across Bharat and consolidate its leadership in core categories such as FMCG and Hotel, Restaurant, and Catering (HoReCa).

The acquisition is yet another move towards Udaan’s public listing plans and follows the company’s recent $114-million Series G fundraise led by M&G Investments and Lightspeed. As part of the transaction, Info Edge has joined Udaan’s cap table, backing its vision of digitally transforming India's retail-tech ecosystem.

“The acquisition is a strategic milestone in our journey to the IPO and beyond,” said Vaibhav Gupta, co-founder and chief executive officer of Udaan. “We share a common vision of becoming the preferred partner to shopkeepers and brands, while winning on costs.”

ShopKirana, founded in 2015, is focused on empowering kirana stores in Tier 2 and 3 cities through digital procurement and efficient last-mile delivery. Its strong presence in cities such as Indore, Bhopal, Agra and Meerut complements Udaan’s national footprint and is expected to drive deeper market penetration and scale in high-frequency FMCG segments.

With the merger, Udaan aims to unlock synergies across sourcing, credit, and supply-chain operations, while accelerating contribution margin gains.

In 2024, Udaan reported a 60 percent year-on-year growth, a 300 basis point improvement in contribution margin and a 40 percent reduction in EBITDA burn. It claims to have further trimmed fixed costs by 20 percent in 2025, so far.

“This partnership brings together our FMCG depth with Udaan’s scale and infra advantage, helping us take more brands to more retailers efficiently,” Sumit Ghorawat, co-founder of ShopKirana, said.

Investors backing the deal see it as a step toward market consolidation and operating leverage. “This merger unlocks meaningful synergies in FMCG and private labels, with deepening presence in key clusters,” said Kitty Agarwal, partner at Info Edge Ventures.

Bejul Somaia, partner at Lightspeed, added, they were happy to see Udaan sharpen its execution while building a stronger, more efficient retail-tech platform.

Founded in 2016, Udaan operates in categories including FMCG, pharma, staples and fresh produce and also offers credit services through its fintech arm, UdaanCapital.