Udaan raises $75 million from investors at flat valuation

MUMBAI: B2B e-commerce startup Udaan has raised a fresh $75 million in funding led by existing investor M&G at a flat valuation of $1.8 billion, co-founder & CEO Vaibhav Gupta told employees in a townhall on Monday, sources said. The Bengaluru-based company is also in advanced discussions to raise another $25 million from investors. The funding, if finalised, is expected to get closed by the next quarter, sources said. Udaan declined to comment.

Udaan had last raised $340 million from investors in December 2023 at a lower valuation of $1.8 billion by largely converting debt notes into equity. The company which was valued at $3.2 billion at its peak saw a markdown in its valuation amid investor caution and a broader market correction following the record funding spree in 2021. The firm’s other existing investors including Lightspeed Venture Partners also backed the latest investment which comes at a time when the funding environment is somewhat tepid with no large deals (above $100 million) in sight.

Udaan plans to deploy a portion of the fresh funds to strengthen its supply chain capabilities and vendor partnerships. The startup helps small businesses to use technology and grow their operations. Last month, the company secured approval from the National Company Law Tribunal (NCLT) to consolidate its businesses into a single entity, as it speeds up relevant processes required to prepare the firm for a potential initial public offering (IPO), which internally the plan is to launch sometime in 2026.

Udaan is also planning to shift its domicile back to India from Singapore. The company has raised close to $2 billion in funding so far.

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