Udaan secures $114M to fuel growth, sets sights on 2026 IPO

Founded in 2016 by ex-Flipkart executives, Udaan now connects over 3 million retailers and 25,000 suppliers, using its latest funding to expand logistics, broaden offerings, and strengthen its leadership in India’s B2B e-commerce sector

B2B e-commerce platform Udaan has raised $114 million in its latest Series G equity round, as the company intensifies efforts to become profitable and prepares for a potential initial public offering (IPO) by 2026.

The funding round was led by global asset management firm M&G Investments and Lightspeed Venture Partners, with participation from a mix of new and returning investors. This latest capital infusion follows an earlier $75 million tranche raised in February this year, maintaining the company’s valuation at approximately $1.8 billion — consistent with its last major fundraising in 2023.

Strategic investment in key sectors

Udaan plans to channel the new funds into expanding its presence in high-growth sectors such as fast-moving consumer goods (FMCG) and the hotel, restaurant, and catering (HoReCa) industries. These segments are viewed as key pillars for long-term growth in India’s evolving B2B commerce landscape.

Additionally, the company aims to strengthen its private label offerings, particularly in essential commodities, to boost margins and support consistent demand. Udaan's leadership stated that these initiatives are central to its strategy of deepening market reach while transitioning toward sustained profitability.

Profitability in sight

Udaan has reported significant progress in improving operational efficiency over the past three years. According to CEO and co-founder Vaibhav Gupta, the company has reduced its EBITDA burn rate by 40% annually and is targeting group-level EBITDA profitability within the next 18 months.

“We’ve built cost discipline into our operating model, making it a competitive strength,” Gupta said. Financial metrics for fiscal year 2023–24 reflect this shift. While gross merchandise value (GMV) rose marginally to ₹5,706.6 crore from ₹5,609.3 crore the previous year, the company succeeded in narrowing its net loss by nearly 20%, from ₹2,075.9 crore to ₹1,674.1 crore.

Cost optimization played a key role, with total expenses declining 4.4% — driven by lower staffing costs (down 35.4%) and reductions in logistics and third-party services. However, raw material costs remained high, accounting for over 75% of total expenses.

Gearing up for IPO

In January, Udaan received approval from the National Company Law Tribunal (NCLT) to consolidate its business operations under Hiveloop E-Commerce, streamlining its structure ahead of the anticipated IPO.

Founded in 2016 by former Flipkart executives, Udaan now serves over 3 million retailers and 25,000 suppliers across India. With this funding milestone, the company is set to bolster its logistics network, diversify its portfolio, and reinforce its leadership in India’s B2B digital trade space.