Indian business-to-business (B2B) marketplace Udaan on Monday said it has raised $114 million in its Series G round of funding, led by London-based global investment manager M&G Plc and Lightspeed Venture Partners, as it moves closer to its planned public market debut.
The fresh capital will be used to strengthen Udaan’s category and customer footprint, expand its presence in the FMCG and HoReCa (hotels, restaurants, and catering) segments, accelerate its private-label initiatives, and fortify its balance sheet in preparation for an IPO. The company did not provide further details on the timing or structure of its planned listing.
The equity round follows Udaan’s Rs 300-crore ($35.7 million) debt raise in October 2024 from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. Prior to that, it secured $340 million in a Series E round in December 2023, also led by M&G, comprising a mix of equity and convertible notes.
Founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, Udaan operates a marketplace connecting manufacturers, wholesalers, retailers, and traders through its logistics arm UdaanExpress. It currently supports over 25,000 sellers and 3 million retailers across 900 Indian cities, offering products in categories such as FMCG, electronics, lifestyle, pharmaceuticals, and general merchandise.
Once a poster child for India’s B2B commerce boom, Udaan has struggled in recent years to maintain its valuation and achieve sustainable profitability. The company was last valued at $3.2 billion in January 2021, but that figure was slashed to around $1.8 billion in a down round earlier this year amid a broader correction in startup valuations.
Udaan’s valuation 2018-2024
Udaan has also gone through multiple cost-cutting measures, including several rounds of layoffs. After eliminating approximately 1,000 jobs in 2022, it laid off another 100-120 employees in December 2023 as part of efforts to streamline operations and improve margins.
