B2B e-commerce platform Udaan has secured $75 million in Series G funding, the company’s co-founder and CEO Vaibhav Gupta announced during a townhall on Monday, according to sources.
The round was led by UK-based M&G with participation from existing investor Lightspeed Venture Partners. During the townhall, Gupta also informed that the company is in advanced discussions to raise an additional $25 million in the coming quarter.
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The latest funding is at a flat valuation compared to company’s previous round of $340 million in December 2023, which valued it at $1.8 billion. However, this is still a 44% reduction from the company’s peak valuation of $3.2 billion in 2021. Excluding the latest round, the company has raised a total of $1.88 billion.
The fresh capital will be utilised to enhance customer experience, deepen market penetration, strengthen strategic vendor partnerships and bolster long-term capabilities in supply chain and credit, sources revealed.
According to data from Tracxn, Udaan’s revenue declined by around 29% to Rs 345.7 crore in FY24 from Rs 486.5 crore in FY23. However, the company’s net losses reduced by around 39% to Rs 657.8 crore in FY24, down from Rs 1,084 crore in FY23.
In CY24, Udaan achieved 65% revenue growth and reported a 70% increase in daily transacting buyers. It also achieved a 30% reduction in absolute Ebitda burn, while improving gross margins by 200 basis points. Sources said the company has also recorded a 20% increase in buyer wallet share and maintains a monthly repeat ratio of over 90%.
Last month, Udaan received approval from the National Company Law Tribunal (NCLT) for the consolidation of its various business entities into a unified entity – Hiveloop Ecommerce. This restructuring is a step towards company’s plans for a public listing.
Lightspeed Venture Partners remains the largest shareholder in Udaan with approximately 40% ownership. M&G, which previously held around 15% stake, is expected to increase its shareholding following this round.
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Udaan did not respond to requests for comments till the time of going to press.
The latest funding round comes after Udaan undertook an operational restructuring initiative, ‘Project Iota’,
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