Udaan raises $75M from existing investors in Series G funding: CEO Vaibhav Gupta

B2B e-commerce firm Udaan has raised $75 million as part of its Series G funding round, with another $25 million expected in the coming quarter, co-founder and CEO Vaibhav Gupta told employees in a townhall today.

The round, which values Udaan at a flat $1.8 billion valuation, was led by London-based global investment manager M&G Plc, along with participation from existing investors including Lightspeed Venture Partners.

The Bengaluru-based company plans to use the latest capital infusion to enhance customer experience, deepen market penetration, strengthen strategic vendor partnerships, and bolster long-term capabilities in supply chain and credit.

The development was first reported by The Economic Times.

Udaan last raised Rs 300 crore in debt financing from Lighthouse Canton, Stride Ventures, InnoVen Capital and Trifecta Capital in October last year. The funds were raised to fund its geographic expansion through its 'micro-market strategy' as it renewed its focus on profitability.

Before that, it secured $340 million in its Series E financing round led by M&G Plc, along with existing investors Lightspeed and DST Global.

Founded in 2016, the company works with over 25,000 sellers and 30 lakh retailers across categories like medicines, lifestyle and general merchandise, electronics, and FMCG goods. It is currently available cross 900 cities in the country.

In January, Udaan got approval from the National Company Law Tribunal (NCLT) for the consolidation of its various business entities into a unified entity, Hiveloop Ecommerce Pvt Ltd. Reportedly, the approval was in

line with Udaan's plans to go public next year.

In April last year, The CapTable had reported how Udaan was looking to discontinue several categories, including electronics and fashion, while the company was witnessing top-level exits with one of its founders leave the company’s board. In FY24, Udaan reported a marginal rise in its revenue to Rs 5,707 crore but only after its revenue had halved to Rs 5,609 in FY23 from Rs 9,900 crore a year earlier.