B2B Marketplace Udaan Raises $75 Mn from UK’s M&G, Lightspeed

Business-to-business (B2B) ecommerce player Udaan has raised $75 million in its series G equity funding round from existing investors UK-based M&G Prudential and Lightspeed.

Vaibhav Gupta, udaan's co-founder and CEO, told employees at a townhall today about the new funding.

He said they might get another $25 million next quarter, according to people who know the matter said.

This investment is happening while the Bengaluru-based B2B ecommerce company tries to keep things steady, especially since many B2B ecommerce startups are starting to go public.

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Udaan, which had its valuation dropped by 44% to about $1.8 billion in 2023, has now raised funds at the same valuation.  

Lightspeed is still the largest shareholder, owning around 40%, while M&G Prudential, which previously held about 15%, is expected to increase its stake after this latest funding round.

Udaan has been working through a tough funding environment, focusing on cutting costs and improving its financial efficiency.

In October 2024, Udaan raised Rs 300 crore (over $35 million) in debt funding round from Lighthouse Canton, Stride Ventures, InnoVen Capital and Trifecta Capital. 

About Udaan

Founded in 2016 by Sujeet Kumar, Amod Malviya and Vaibhav Gupta, Udaan is a B2B ecommerce platform with over 3 million retailers offering products in categories like fruits and vegetables, electronics, home goods and lifestyle items. Udaan supplies groceries and other products to sellers, who then sell them to customers.

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