Venture Capital: Indian B2B E-Commerce Platform Udaan Raises $120M

October 28, 2022 | News, Venture Capital

The raise was a mix of convertible notes and debt.

An internal email sent by Aditya Pandey, the CFO of Indian business-to-business e-commerce major Udaan revealed that the startup has raised $120 million in convertible notes and debt led by existing shareholders and bondholders.

The company has therefore raised $350 million in convertible notes and debt in the past year. Fintrackr says Udaan raised around $1.4 billion and was valued at $3 billion as of January 2021. (Entrackr)

“This fund raise reflects the confidence of investors in our business model and their endorsement of the journey to unit economics, driven by great progress in evolution of our business model and cost efficiency, that we initiated last year,” said the email.

Udaan provides procurement, logistics and working capital to small and medium merchants across India. It claims to have a network of over 3 million retailers, chemists, kirana shops with a supplier base of 30,000 sellers which covers 1200 cities and towns in India.

The startup is targeting to be IPO-ready within the next 12-18 months.

Udaan achievements

In the email, Pandey related some of the notable milestones achieved by the company:

  • Unit economics has improved by ~1,000 bps
  • Equally strong improvements in both gross margins and operating costs
  • The right business design and unit economics has translated into a 60%+ reduction in burn.
  • Monthly buyer repeat rates have increased by 500+bps in the last two quarters

“With your support, we will continue to invest to build udaan as a professionally run organisation with scale, capabilities and resilience that can leverage the huge opportunity that Kirana commerce offers, while empowering the small businesses of Bharat,” the email said.

Related Story: Indian B2B Startup udaan Raises $280M Including From Tencent

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Alternative Investments/ESG: Six New Responsible Funds Flag Off Morgan Stanley’s ETF Platform

Morgan Stanley Investment Management (MSIM) has launched its ETF platform with six Calvert ETFs listed on NYSE Arca. The ETFs feature Calvert’s responsible investing approach and offer access to four…
Artificial Intelligence: MusicLM, A New Generative AI Tool From Google, Creates Music From Text
February 2, 2023     Artificial Intelligence, News

Google (NASDAQ: GOOGL) recently published a research paper on its new AI tool, MusicLM, designed to create music. The tool is based on machine learning and is trained on vast…
Artificial Intelligence: Snap Mulling AR Glasses Powered By Generative AI
February 2, 2023     Artificial Intelligence, News

Snap (NYSE: SNAP), the parent company of Snapchat, has hinted at future AR glasses powered by generative AI technology. CEO Evan Spiegel stated that AI will be critical to the…
Digital Assets: Binance And Mastercard Launch Prepaid Crypto Card In Brazil
February 1, 2023     Digital Assets, News

Binance and Mastercard (NYSE: MA) have jointly launched the Binance Card in Brazil, allowing Binance users in the country to make purchases and pay bills with cryptocurrencies like bitcoin and…