Udaan raises Rs 300 Cr in debt funding from Lighthouse Canton, Stride Ventures and others
Udaan plans to focus on enhancing its profitability, streamline its supply chains and ramp up its Micro market strategy.
eB2B platform Udaan on Monday said it closed a Rs 300 crore debt financing round from Lighthouse Canton, Stride Ventures. InnoVen Capital, and Trifecta Capital.
Bengaluru-based Udaan plans to use the funds to expand its geographical footprint through the company's ‘Micro-Market strategy’ as it gears its focus on profitability by driving buyer adoption and expanding wallet share.
It will also use the funds to enhance its ‘Go-to-Market’ (GTM) plans, streamline the supply chain, invest in opening new Micro-fulfilment Centres (MFCs), and elevate the service delivery experience. Udaan claims to have a 70% market share in India as it operates across categories including FMCG, staples, fruits and vegetables, and pharma.
"This funding will further strengthen our financial position, providing the flexibility to double down on key strategic initiatives such as expanding our Cluster model to drive operational excellence enabling us to continue on our path to profitability while solidifying our market position," noted Kiran Thadimarri, Senior Vice President, Group Finance, Udaan.
During the calendar year 2024, year-to-date Udaan clocked 60% revenue growth and a 50% increase in daily transacting buyers. During the same period, its gross margins improved by 200 bps and contribution margins by 300 bps.
Udaan also achieved a 30% reduction in absolute EBITDA burn and witnessed a 20% increase in buyer wallet share.
Founded in 2016, Udaan closed a $340 million Series E financing round led by London-based global investment manager M&G Plc along with participation from existing investors Lightspeed and DST Global late last year. Post funding, the company laid off 100-120 employees as it increased its focus on enhancing efficiency.
Edited by Affirunisa Kankudti