B2B e-commerce platform Udaan has closed its Series G funding at $114 million, led by M&G Investments and Lightspeed Venture Partners, as it intensifies its growth across FMCG, HoReCa, and private label brands in preparation for a public listing.

Udaan’s latest Series G funding provides a fresh runway to expand its footprint in the FMCG and HoReCa sectors. The Bengaluru-based company has consistently enhanced its private label offerings in staples, positioning itself for sustainable long-term growth.

With this new investment, Udaan plans to accelerate customer acquisition and category leadership, particularly in B2B e-commerce, while fortifying its financials ahead of its anticipated IPO.

The extended round follows an earlier $75 million tranche raised in February 2025 at a flat valuation of $1.8 billion. Notably, this brings Udaan’s Series G funding to a total of $114 million, affirming strong investor confidence in the company’s transformation strategy.

Udaan, Driving Efficiency and Profitability

Over the past three years, Udaan has strategically restructured its operations to reduce burn and improve margins. CEO Vaibhav Gupta said, “We have reduced our EBITDA burn by 40 percent every year for the last three years and remain on track to achieve full EBITDA profitability in the next 18 months.”

The company reported over 60 percent year-over-year growth in calendar year 2024, accompanied by a 300+ basis-point increase in contribution margin. To date, in CY 2025, it has achieved an additional 100 basis point improvement and reduced fixed costs by 20 percent, reflecting an operating discipline uncommon in the B2B e-commerce space.

To streamline operations and boost governance, Udaan consolidated all business verticals under Hiveloop Ecommerce following NCLT approval earlier this year. The restructuring aligns with its goal to debut on public markets by late 2025 or early 2026.

The company also reported a 19 percent reduction in losses for FY24, resulting in a net loss of INR 1,674.1 crore, down from INR 2,075.9 crore in FY23. However, revenue remained relatively flat, with a modest 1.7 percent rise to INR 5,706.6 crore.

A Unicorn with Deep Market Penetration

Founded in 2016, Udaan claims dominance over 70 percent of India’s B2B e-commerce market. It operates across diverse segments, including FMCG, staples, pharmaceuticals, and fresh produce. With a total funding of $1.95 billion and investors such as M&G Investments, Lightspeed, and DST Global, the company continues to strengthen its market position.

Udaan’s focus on unit economics, margin expansion, and customer segmentation within HoReCa and private label brands demonstrates its ambition to be a lean, capital-efficient, and scalable business model.

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