Udaan, India’s largest business-to-business (B2B) e-commerce platform, has successfully raised $340 million in Series E funding, showcasing resilience amid a global economic slowdown and tight liquidity conditions. M&G plc led the funding round, accompanied by existing equity investors Lightspeed Venture Partners and DST Global, pending regulatory approval.
The funding, comprising fresh equity investments and the conversion of existing debt (convertible notes) into equity, aims to bolster Udaan’s financial foundation. While the company did not disclose any change in its current valuation of $3.1 billion, it emphasized that the funding ensures the fulfillment of its business plan, paving the way for profitability within the next 12-18 months.
Vaibhav Gupta, Co-founder and CEO of Udaan, stated, “The Series E round strengthens our balance sheet and fully funds our business plan. It enables our continued journey of growth and profitability, positioning us well to be public-market ready in the next 12–18 months.”
Udaan’s regional operational design aims to enhance proximity to customers, fostering agile and efficient operations. The company remains committed to empowering small businesses in Bharat and unlocking the substantial $100 billion eB2B market opportunity.
The funding positions Udaan to compete effectively with B2B e-commerce players like Amazon, Flipkart, and Reliance’s JioMart. The B2B e-commerce market is anticipated to exceed $125 billion in sales by 2027, with a projected compound annual growth rate of 45%, as per a report by Avendus Capital.
Udaan’s focus over the past two years on its sustainability agenda, coupled with eight consecutive quarters of improving profitability, has contributed to its robust performance. The funds raised will be allocated to enhancing customer experience, market penetration, strategic vendor partnerships, and reinforcing long-term supply chain and credit capabilities.
Niranjan Sirdeshpande, Director (Europe, Middle East, and Africa) at M&G Catalyst, expressed support for Udaan’s pursuit of profitable growth, emphasizing the platform’s potential to become a trusted partner for small businesses in India.
Bejul Somaia, Partner at Lightspeed Venture Partners, reiterated their commitment to Udaan’s leadership in the EB2B marketplace, emphasizing the financial strength gained through this financing and its positive impact on empowering small businesses across Bharat.
Udaan’s strategic regional cluster-led operating organization, combined with its multi-category cluster-anchored business strategy, has received strong validation in the past 12 months. The company aims to leverage this momentum to drive sustainable growth and serve the diverse needs of shopkeepers and kiranas throughout the country.
