Udaan, the Bengaluru-based B2B e-commerce unicorn, has acquired retail-tech startup ShopKirana in an all-stock deal, signaling a major consolidation in India’s eB2B market.
This acquisition follows Udaan’s recent $114 million Series G funding round, led by M&G Investments and Lightspeed. According to the company’s press release, the deal will enhance Udaan’s operational efficiency, strengthen its presence in key markets, and accelerate its journey toward profitability and an IPO.
Founded in 2015, ShopKirana specializes in digitizing procurement for kirana stores in tier II and III cities like Indore, Bhopal, Lucknow, Agra, Surat, and Meerut. Its integration with Udaan will extend Udaan’s reach in high-frequency segments such as FMCG and HoReCa.
Udaan stated that the combined operations will improve supply chain efficiency and operating leverage while delivering greater value to retailers and brands.
The acquisition also adds Info Edge as a shareholder in Udaan. As per TheKredible, ShopKirana has raised $50.46 million to date from investors, including Info Edge, Sixth Sense Ventures, and the Oman India Joint Investment Fund.
Udaan stated that the merger is intended to create a “preferred platform for kiranas and brands,” emphasizing cost leadership and scale-driven profitability. Over the past two years, the company has focused on cost optimization, reducing fixed costs by 20% and cutting EBITDA burn by 40% in CY2024, with an additional 20% reduction achieved so far in 2025. Udaan also claims its contribution margin improved by more than 300 basis points last year and has increased by another 100+ bps year-to-date.
For the fiscal year ending March 2024, ShopKirana’s gross revenue declined by 6.26%, dropping to ₹639.16 crore in FY24 from ₹681.81 crore in FY23. However, the company succeeded in cutting its losses by 30%, bringing them down to ₹55 crore in FY24. The company has not yet disclosed its FY25 financial results.
This marks the second major consolidation in the B2B e-commerce sector. Recently, Jumbotail acquired Solv India for an undisclosed amount. Following the acquisition, Jumbotail raised $120 million in its Series D round, achieving unicorn status.
