As fresh legal challenges emerge for B2B ecommerce unicorn Udaan following insolvency proceedings against its Singapore-based holding company over a $170 million note default, its lenders have engaged Singapore law firm WongPartnership to represent them in the case.
According to The Economic Times, Trustroot Internet Pvt Ltd has defaulted on $170 million of compulsorily convertible notes that matured on June 30.
The report added that a consortium of international lenders has initiated insolvency proceedings in Singapore against Trustroot Internet over the overdue payments. It further stated that Alvarez & Marsal has also been appointed as part of the bankruptcy process.
Sources told DealStreetAsia that the dispute stems from a roughly $340 million convertible financing package that Udaan raised a few years ago.
As part of a broader balance-sheet restructuring completed earlier this year, nearly $200 million of the facility is understood to have been converted into equity, while the remaining $170-200 million, including accrued interest, remained as debt.
The outstanding debt has since matured, and Udaan has been unable to repay the amount, triggering the payment default and prompting lenders to pursue legal action, said sources.
The company’s major global creditors and bondholders include Nomura, Tor Investment Management, and Arena Investors, sources said.
When contacted, the Udaan spokesperson stated: “The matters referenced relate to ongoing restructuring negotiations and offshore proceedings among offshore stakeholders at the offshore holding company level.”
The person added that these discussions have no bearing on its operating entities in India. The startup’s team in the country run the day-to-day business.
“Udaan and udaanCapital [the fintech arm of the company] continue to operate as usual, serving customers across trade commerce and supply chain financing. We will continue to focus on delivering value to our customers, partners, employees and stakeholders,” the spokesperson said.
An email sent to WongPartnership did not elicit any response.
Founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, Udaan runs a B2B marketplace connecting manufacturers, wholesalers, retailers, and traders, supported by its logistics arm UdaanExpress.
Headquartered in Bengaluru, the company has raised over $1.8 billion in combined equity and debt financing from investors including M&G Investments, Lightspeed Venture Partners, DST Global, Altimeter Capital, Tencent, GGV Capital, Hillhouse Investment, and Microsoft.
It was last valued at about $1.8 billion following a down round in 2024.
The company is understood to have improved its loss profile in recent years, with sources saying it has undertaken multiple refinancing and restructuring exercises to stabilise its balance sheet.
Prior to the latest developments in Singapore, Udaan had also faced isolated disputes with vendors and lenders over payment and contractual matters, though none materially disrupted its core operations.
