Udaan Raises $114Mn Funding Led By M&G, Lightspeed

udaan, a B2B ecommerce company has raised $114 million in fresh equity funding as part of its Series G round led by M&G Investments.

The round also saw participation Lightspeed, with participation from a mix of existing and new investors. 

The startup plans to use the funds to grow its reach in key product areas and customer groups, especially in FMCG and the Hotel, Restaurant, and Catering (HoReCa) sector. It also plans to boost its private-label products in staples to help improve profit margins.

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“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 amortisation) burn by 40 per cent 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.

Udaan hasn’t shared a date for its stock market listing yet, but sources say it could happen in the next 12 to 24 months, depending on market conditions and profits.

The company is also growing its fintech arm, UdaanCapital, which gives working capital to retailers and suppliers—an important part of how it plans to make money.

About Udaan 

Founded in 2016 by former flipkart executives Amod Malviya, Sujeet Kumar and Vaibhav Gupta, Udaan runs what it claims is India’s largest B2B e-commerce platform, serving over 12,000 pin codes with products like staples, medicines, fruits and vegetables, and electronics.

The company says it holds about 70% of the market.

Udaan has shifted from rapid growth to more focused and efficient operations, similar to competitors like jumbotail, ElasticRun, and ShopKirana, who are also aiming for sustainable growth.

So far, Udaan has raised nearly $2 billion, making it one of the most well-funded companies in this space.

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