B2B platform Udaan raises $200 million in sale of convertible debt

Business-to-business (B2B) e-commerce platform Udaan has raised $200 million in debt convertible into equity, chief financial officer Aditya Pande said in an email to employees on Wednesday, January 5.

Moneycontrol has seen a copy of the mail. Udaan, which appointed a chief executive officer recently in co-founder Vaibhav Gupta after years of not having one, has raised $250 million in the last few months via debt sales.

The debt raising reflects Udaan's broadening capitalisation strategy, eyeing a stock market listing and beyond, Pande wrote in the letter.

The company, founded in 2016 with the vision of transforming India’s ecosystem, had appointed investment bank Goldman Sachs Group Inc. to raise funds, Moneycontrol reported earlier.

Udaan said the convertible notes were oversubscribed two times, and that existing investors participated as well. The convertible notes will get converted to equity when Udaan's next fund-raising round happens or when it goes public, and investors will get equity shares at a relative discount.

Udaan last raised equity funding in January 2020, when it was valued at $3.1 billion. Its investors include DST Global, Lightspeed Venture Partners and GGV Capital, among others.