udaan raises USD 114 million from M&G Investments, Lightspeed

New Delhi: eB2B platform udaan has raised USD 114 million (about Rs 974 crore) in fresh equity capital in a funding round led by M&G Investments and Lightspeed.

The funds will be used to expand udaan’s presence across categories and customers, particularly targeting the Fast-Moving Consumer Goods (FMCG) sector and the Hotel, Restaurant, and Catering (HoReCa) segment, according to a company statement.

"udaan will also accelerate its private label brands initiatives in the staples category. This capital raise will also fortify udaan’s balance sheet, providing enhanced financial flexibility as the company advances toward its public market debut.

"As part of its long-term vision, udaan is focused on driving 'consistent growth with profitability at scale' by following regional cluster-led operating model reinforcing its commitment to building a sustainable and scalable business," the statement said.

The fundraising will also strengthen udaan’s balance sheet as the company moves closer to a public market listing.

udaan said it has reduced its fixed costs by 20 per cent, leading to a 40 per cent reduction in EBITDA burn in calendar year 2024 and an additional 20 per cent reduction year-to-date in 2025.

"Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage. We have reduced our EBITDA burn by 40 per cent every year for the last 3 years and are on track to achieve full group EBITDA profitability in the next 18 months," Vaibhav Gupta, Co-founder and CEO, udaan, said.

With a network of retailers, suppliers, and brands nationwide, udaan enables supply chain and logistics operations, driven by technology and focused on B2B trade.