Business-to-business e-commerce major Udaan has raised $120 million in convertible notes and debt led by existing shareholders and bondholders. The company is also planning to go public in the next 12-18 months, signalling a delay in its initial public offering (IPO).
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Chief Financial Officer Aditya Pande said, “With this round, the total funds raised by Udaan through convertible notes and debt in the last four quarters has crossed $350 million, making it one of the largest structured instrument fund raises in the country.”
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Udaan has raised around $1.4 billion and was valued at $3 billion as of January 2021. Udaan had also laid off 180 employees to cut costs and extend the runway because of the challenging funding environment.
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The company provides procurement, logistics and working capital to small and medium merchants across India, with a network of over 3 million retailers, chemists, kirana shops with a supplier base of 30,000 sellers covering 1200 cities and towns in India.
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Aditya Pande further said, “Despite the funding-related challenges being experienced by the larger startup ecosystem, this fundraise reflects the confidence of investors in our business model and their endorsement of the journey to unit economics, driven by great progress in evolution of our business model and cost efficiency, that we initiated last year.”
