Udaan Raises $114 Mn to Deepen B2B Reach Ahead of IPO Push

Udaan has announced the closure of its Series G financing round raising $114 million in fresh equity capital. The funding round was led by M&G Investments, Lightspeed, and other new along with existing investors. The eB2B platform will leverage this fresh capital in strengthening Udaan’s category and customer footprint, with focus on FMCG and Hotel, Restaurant, and Catering (HoReCa) customer segment.

The new-age company will accelerate its private label brand initiatives in the staples category. This capital raise will also fortify Udaan’s balance sheet, providing enhanced financial flexibility as the company advances toward its public market debut.

“Over the last three years, we have transformed the business by building cost as a capability and a competitive advantage. We have reduced our EBITDA burn by 40% every year for the last three years and are on track to achieve full group EBITDA profitability in the next 18 months,” said Udaan CEO and cofounder Vaibhav Gupta.

“Completion of series G round enables us to continue investing in the customer-tech platform, sales-tech capabilities and deepening customer value proposition helping deliver our goal of consistent growth with profitability at scale,” he added.

Udaan continues to demonstrate strong contribution margin accretive growth, clocking over 60% Year-on-Year (Y-o-Y) growth in CY 2024, alongside a more than 300 basis point improvement in contribution margin.

This growth trajectory has continued into CY 2025 with an additional 100+ bps contribution margin improvement year-to-date. Alongside the contribution margin growth and scale operating leverage, Udaan also reduced its fixed costs by 20%, leading to a 40% reduction in EBITDA burn in calendar year CY 2024 and an additional 20% reduction year-to-date in CY 2025.

Founded in 2016, Udaan aims to transform the trade ecosystem and empower small businesses by leveraging technology. As India's largest eB2B platform with about 70% market share in India, Udaan operates across diverse categories including FMCG, Staples, Fruits & Vegetables, and Pharma.

It also powers tech-driven supply chain and logistics operations, with a focus on B2B trade. Through its fintech arm, UdaanCapital, the startup provides financial products and services tailored to the working capital needs of small businesses, manufacturers, and retailers.