National, October 28, 2024: udaan, India’s largest eB2B platform, today announced the closure of a new round of debt financing from top-tier investors including Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. These funds have collectively invested approximately RS 300 crores in udaan during the current financial year.
This fresh round of debt funding follows udaan‘s USD 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 latest debt funding will further strengthen udaan’s balance sheet while offering flexibility to invest and continue leading the eB2B market in the changing market dynamics. With this capital infusion, udaan will scale its geographical footprint through ‘Micro-Market strategy’. Additionally, the company will utilise the funds to optimise operations by enhancing ‘Go-to-Market’ (GTM) capabilities, streamline supply chain processes, invest in opening new Micro-fulfilment Centres (MFCs) and elevate service delivery experience for customers. These market-driven initiatives will significantly enhance operational efficiency across all verticals while driving productivity and reducing costs.
With profitability as a key priority the funds will be strategically invested in initiatives that accelerate sustainable growth by driving buyer adoption and expanding wallet share. Further, udaan will continue to refine its business model, emphasising value creation for stakeholders while scaling its product offerings and expanding geographical reach. By prioritising both operational excellence and long-term profitability, udaan aims to reinforce its leadership in the eB2B space and strengthen its position as the preferred partner for kirana stores and small businesses across Bharat.
Kiran Thadimarri, Senior Vice President, Group Finance, udaan, said, “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.”
In CY24, year-to-date (YTD), udaan has achieved consistent growth highlighting the strength of its strategic approach and implementation of the new design playbook in the marketplace. The company is on track to achieving profitability, with an impressive 60% revenue growth and over a 50% increase in daily transacting buyers, driving deeper market penetration and increasing wallet share among retailers. Additionally, gross margins have improved by 200 basis points and contribution margins by 300 basis points YTD, alongside a 20% increase in buyer wallet share and monthly repeat ratio of over 90%. Most notably, during the period the company achieved a 30% reduction in absolute EBITDA burn, underscoring consistent focus on driving sustainable growth through efficiency enhancement and superior execution.
Ankit Agrawal, Executive Director, Lighthouse Canton said, “ We are excited to partner with udaan as they continue to transform the B2B landscape in India and maintain category leadership. This funding round underscores our confidence in udaan’s strategic direction and its ability to drive sustainable growth for small businesses across India.”
Apoorva Sharma, Managing Partner, Stride Ventures, said, “We are proud to partner with udaan as it scales operations and deepens market presence. This investment highlights the evolving role of venture debt in driving sustainable growth and operational excellence. We look forward to supporting udaan’s journey towards empowering businesses across Bharat and market leadership.”Sameer Mansukhani, Partner, InnoVen Capital “udaan‘s focus on using technology to build a digital and more efficient supply chain for the millions of Kirana stores is commendable. Innoven has partnered udaan since 2021. We are glad to be continuing this partnership as the team works towards achieving its goal of building a profitable business.”