Udaan, a B2B e-commerce platform, has raised $114 million in its Series G funding round led by M&G Investments and Lightspeed with participation from other existing and new investors.
The fresh capital raised will be used to strengthen its category and customer footprint, with a focus on the Fast-Moving Consumer Goods (FMCG) category and the Hotel, Restaurant, and Catering (HoReCa) customer segment.
Udaan will also 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.
Prior to this, Udaan secured $340 million in a funding round led by M&G and Lightspeed in December 2023. Prior to that, in October, Udaan raised ₹300 crore through debt financing from investors including Lighthouse Canton, Stride Ventures, and InnoVen Capital.
Founded in 2016, Bengaluru-headquartered Udaan is an eB2B platform, that claims around 70% market share. It operates across sectors like FMCG, Staples, Fruits & Vegetables, and Pharma. The platform connects thousands of suppliers and retailers, including national and regional brands.
Udaan claims to have clocked more than 60% year-on-year (Y-o-Y) growth in CY 2024, alongside a 300+ basis point improvement in contribution margin. Along with this margin growth and operating leverage at scale, Udaan also reduced its fixed costs by 20%, resulting in a 40% reduction in EBITDA burn in CY 2024 and an additional 20% reduction year-to-date in CY 2025.
Vaibhav Gupta, Co-founder and CEO, Udaan, said, “Over the last 3 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 3 years and are on track to achieve full group EBITDA profitability in the next 18 months. udaan’s hybrid model of ‘highly available eCom app + new-gen tech-first sales’ is now established as the benchmark winning model for eB2B, providing an ROI accretive customer wallet growth, and a strong solution for brands and manufacturers to drive product mix.”
He added, “Completion of series G round enables us to continue investing in our customer-tech platform, sales-tech capabilities and deepening our customer value proposition helping us deliver our goal of consistent growth with profitability at scale.”
