Udaan Closes $75 Million Series G Round, Gears Up for Expansion and IPO

Udaan has successfully closed its ‘Series G’ equity funding round, securing $75 million, according to company sources. The latest funding round was led by M&G Plc, with significant participation from existing investors, including Lightspeed Venture Partners. Udaan is reportedly in advanced discussions to raise an additional $25 million in equity funding in the coming quarter.

Sources told Outlook Business, Udaan plans to utilize the newly acquired funds to enhance customer experience, expand market reach, strengthen strategic vendor partnerships, and bolster its supply chain and credit infrastructure.

The latest round follows Udaan's previous fundraising of $340 million in December 2023. In October 2024, the company also secured Rs 300 crore (over $35 million) in debt funding from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. To date, Udaan has raised approximately $1.9 billion in debt and equity funding.

Last month, Udaan received approval from the National Company Law Tribunal (NCLT) to consolidate its various business entities into a unified entity, Hiveloop Ecommerce Pvt Ltd. This strategic consolidation simplifies operations and enhances operational efficiency, marking a significant step towards Udaan's ambitions of becoming a publicly listed company.

The company has shown consistent growth in 2024, with a 65% increase in revenue and over 70% growth in daily transacting buyers, driving deeper market penetration. Udaan also improved its gross margins by 200 basis points and contribution margins by 300 basis points, alongside a 30% reduction in absolute EBITDA burn. The company reported a 20% increase in buyer wallet share and a monthly repeat ratio of over 90%.

Despite a modest 1.7% increase in gross revenue (GMV) to Rs 5,706.6 crore for the fiscal year ending March 2024, Udaan managed to reduce its losses by 19.4% to Rs 1,674.1 crore, reflecting its strategic focus on sustainable growth and operational efficiency.