Udaan, India’s leading B2B e-commerce platform, has secured $114 million in fresh equity funding as part of its Series G round, the company announced on Monday.
The funding round was led by M&G Investments and Lightspeed, along with participation from both existing and new investors. While the company’s valuation remains steady at around $1.8 billion, the successful raise underscores growing investor confidence in Udaan’s long-term strategy and its path toward a public listing.
Udaan plans to utilize the new capital to strengthen its presence in key product categories and customer segments, with a strong focus on fast-moving consumer goods (FMCG) and the hotel, restaurant, and catering (HoReCa) segment. Additionally, the company aims to scale up its private-label offerings in the staples category—an important move to enhance profitability.
The latest funding round strengthens Udaan’s balance sheet and provides greater financial flexibility as the company prepares for its initial public offering (IPO).
“Over the last three years, we have transformed the business by building cost as a capability and a competitive advantage. We have reduced our EBITDA (earnings before interest, taxes, depreciation, and amortization) burn by 40 percent every year for the last three years and are on track to achieve full group EBITDA profitability in the next 18 months,” said Vaibhav Gupta, co-founder and CEO of Udaan.
“Our hybrid model of a highly available e-commerce app plus new-gen tech-first sales is now established as the benchmark winning model for eB2B. It provides ROI-accretive customer wallet growth and a strong solution for brands and manufacturers to drive product mix,” he added.
As part of its long-term strategy, Udaan emphasized its focus on driving “consistent growth with profitability at scale” through a regional cluster-led operating model, underscoring its aim to build a sustainable and scalable business.
The company continues to show robust, contribution-margin-accretive growth, recording over 60% year-on-year (YoY) growth in calendar year 2024, along with a 300+ basis point improvement in contribution margin. This positive trend has extended into 2025, with an additional 100+ basis point gain so far. Udaan has also streamlined operations by cutting fixed costs by 20%, leading to a 40% reduction in EBITDA burn in CY2024 and a further 20% decrease in CY2025 to date.
Founded in 2016, Udaan operates a digital platform that connects small retailers with manufacturers and wholesalers, helping streamline India’s fragmented retail supply chain. According to data from Tracxn, the company has raised over $1.95 billion to date.
Udaan competes with major players like Amazon, Flipkart, and Reliance’s JioMart in the B2B e-commerce space—an industry projected to exceed $125 billion in sales by 2027, growing at a compound annual growth rate (CAGR) of 45%, as per a report by Avendus Capital.
In FY2023–24, Udaan generated revenue of ₹5,700 crore while significantly reducing its EBITDA burn by 36% year-on-year, bringing it down to ₹923 crore.
