India’s leading B2B e-commerce platform, Udaan, has raised $75 million in a Series G funding round to strengthen its supply chain and accelerate its IPO (initial public offering) plans. The latest investment, led by M&G Plc, saw strong participation from existing investors, including Lightspeed Venture Partners. While maintaining a flat valuation of $1.8 billion, Udaan is also in advanced talks to secure an additional $25 million in the coming quarter.

With this fresh infusion of capital, Udaan plans to enhance customer experience, expand its market reach, strengthen strategic vendor partnerships, and optimize its supply chain and credit infrastructure. The company aims to deepen its presence across India’s fragmented retail ecosystem, where it competes with major players like Amazon, Flipkart, and Reliance’s JioMart.

The Indian B2B e-commerce sector is projected to exceed $125 billion in sales by 2027, expanding at a 45 percent compound annual growth rate (CAGR), according to Avendus Capital. This growth trajectory underscores Udaan’s strategic push to capture a larger market share.

Udaan’s IPO Roadmap

In preparation for its IPO, Udaan recently received approval from the National Company Law Tribunal (NCLT) to consolidate its businesses under a single entity—Hiveloop Ecommerce Pvt Ltd. This restructuring simplifies its corporate structure, enhances operational efficiency, and creates new financing opportunities, including the ability to go public in India by 2026.

Udaan aims to list its shares by the end of 2025 or early 2026, positioning itself as a dominant force in India’s B2B e-commerce landscape. The restructuring move is expected to streamline operations, reduce redundancies, and improve financial sustainability as it gears up for public listing.

Financial Performance and Operational Efficiency

Udaan’s financial health has significantly improved, with revenues reaching INR 5,700 crore (~$686 million) in FY 2023-24. The company reduced its EBITDA (earnings before interest, taxes, depreciation, and amortization) burn by 36 percent, cutting losses to INR 923 crore (~$111 million).

Additionally, the company saw a 35 percent decline in SG&A (selling, general, and administrative) expenses, highlighting its focus on cost control and disciplined execution. Other key financial highlights include:

65% year-over-year revenue growth
70% increase in daily transacting buyers
200 basis point improvement in gross margins
300 basis point increase in contribution margins
20% rise in buyer wallet share
Monthly repeat purchase ratio of over 90%

These numbers indicate a strong trajectory toward profitability while maintaining market dominance.

Capital Structure and Debt Financing

Udaan has now raised $1.88 billion across debt and equity. In October 2024, the company secured INR 300 crore (~$35 million) in debt funding from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital.

While Udaan’s gross merchandise value (GMV) grew only 1.7 percent year-over-year—from INR 5,609.3 crore ($674 million) in FY23 to INR 5,706.6 crore ($686 million) in FY24—the company successfully reduced its losses by 19.4 percent to INR 1,674.1 crore ($201 million).

As Udaan solidifies its B2B e-commerce leadership, its focus remains on sustainable growth, operational efficiency, and achieving profitability ahead of its IPO.

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