B2B platform udaan has announced the closure of a debt financing of approximately ₹300 from investors including Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital.
This fresh round of debt funding follows udaan’s $340 Million Series E financing round that was led by M&G Plc, with participation from existing equity investors Lightspeed Venture Partners and DST Global.
The company will use the proceeds to deploy the fresh proceeds to expand its outreach through micro-market strategy and boost go-to-market capabilities and operations. It further aims to streamline its supply chain processes and open new micro-fulfilment centres, the startup said in a statement.
Further, the company said that it will continue to refine its business model, scaling its product offerings and expanding geographical reach.
“The latest round of debt funding highlights the confidence of investors in udaan’s business model and the huge potential that the Indian eB2B market offers. It’s an endorsement of the consistent quarter-on-quarter growth achieved by the company over the last ten quarters through its various ‘customer-first’ initiatives.”
“This funding will further strengthen our financial position, providing the flexibility to double down on key strategic initiatives such as expanding our Cluster model to drive operational excellence enabling us to continue on our path to profitability while solidifying our market position,” said Kiran Thadimarri, Senior Vice President, Group Finance, udaan.
The company said that it is on track to achieving profitability, with 60 per cent revenue growth and over a 50 per cent increase in daily transacting buyers, driving deeper market penetration and increasing wallet share among retailers.
Additionally, it saw a 20 per cent increase in buyer wallet share and monthly repeat ratio of over 90 per cent. During the period the company achieved a 30 per cent reduction in absolute EBITDA burn. Udaan has been actively cutting costs over the past year, as evidenced by layoffs. In December 2023, the company let go of more than 100 employees.