udaan secures $160M in financing
IPO-bound B2B ecommerce platform udaan has raised $160 million through a mix of fresh equity, debt, and debt-to-equity conversion, strengthening its balance sheet and simplifying its capital structure as it gears up for a public listing.
IPO-bound eB2B platform udaan on Tuesday said it has secured $160 million in a financing round through the issuance of fresh equity and debt, as well as through the conversion of existing debt into equity.
The proposed transaction includes an infusion of fresh capital from existing equity shareholders, alongside a new investor, the company said in a statement.
udaan's existing shareholders include the likes of M&G and Lightspeed Venture Partners. However, the company did not specify which of them participated in the latest funding round.
udaan also secured a commitment of approximately $45 million from an unnamed global investment management firm. Provided through the firm's private credit platform, the funding is earmarked to strengthen the Bengaluru-headquartered company's balance sheet and fuel its long-term growth.
"The transaction is expected to materially strengthen udaan's balance sheet while simplifying capital structure, providing greater financial flexibility to support the company's next phase of growth and advancing its long-term public market readiness plans," the statement said.
As part of the capital restructuring, certain existing convertible bondholders will convert a portion of their outstanding bonds into equity. The remaining outstanding balance of these convertible bonds will be extended on revised terms and conditions.
"This financing round marks another milestone in udaan's journey towards building a sustainable, profitable and institutionally resilient business. Over the last several quarters, we have consistently improved our operating performance by delivering healthy growth while significantly strengthening profitability and cash efficiency. With a stronger balance sheet and a simpler capital structure, we are well positioned to continue investing in customer value, deepening our market leadership and progressing towards our long-term public market ambitions," said Vaibhav Gupta, co-founder and CEO of udaan.
Founded in 2016, udaan enables technology-based supply chain and logistics operations, focusing on B2B trade. It operates across diverse categories including FMCG, staples, fruits and vegetables, and pharmaceuticals. It also provides working capital and financial services to small businesses and retailers through its fintech arm, udaanCapital.
In June 2025, the company raised $114 million (about Rs 974 crore) in a funding round led by M&G Investments and Lightspeed.