[Funding alert] Udaan raises $200M through convertible note, oversubscribed 2X

In an internal email to the team, Udaan the B2B ecommerce unicorn announced that they raised $200 million through convertible note, that was oversubscribed by 2x. The round saw five new investors, which the company did not name. It also stated that it has raised $50 million through debt. Thus the total funding raised is $250 million in convertible note and debt in the last quarter of December 2021.

The total funding raised in the year 2021 has been over $500 million, with $280 million through an additional financing round to the now $250 million. The total funding raised by Udaan is at $1.4 billion.

In an internal email YourStory reviewed, it said -

Hello All - Trust you are keeping well and have had a great start to the New Year!

We are excited and glad to share that we have five new marquee investors coming onboard the Udaan juggernaut, as part of our recently concluded convertible note financing. This round was oversubscribed 2x, and also saw participation from our existing investors, including those who bought into the company through the secondary (ESOP) round in H1 2021.

A convertible note is an instrument typically used by companies at pre-IPO stage, and the instrument converts into equity at the IPO. Large scale tech companies that have successfully used convertible notes include Airbnb, Uber, Spotify, Robinhood etc. 

This reflects our “broadening the capitalisation strategy”, as we architect our journey for public markets and thereafter. With this convertible offering, we, as a company, have started building a complete new muscle in our finance function - which we will continue to strengthen as we go forward.

With this note, the total funds raised by Udaan through debt and convertible note through just the last quarter of 2021 has crossed $250 million, setting us up well to continue executing our strategic agenda.

Thank you. Take care and stay safe!