Udaan Appoints Ex-Instacart Executive Nilam Ganenthiran As New Board Member

SUMMARY

Nillambaran Ganenthiran will reportedly be a representative of Lightspeed on the B2B unicorn’s board

Udaan is reportedly in talks with existing investors, including Lightspeed India, to raise a $200-250 Mn internal funding round

The startup posted a loss of INR 3,075 Cr in FY22 and fired over 500 employees in two layoff rounds since the onset of funding winter last year

B2B ecommerce unicorn Udaan has appointed Nillambaran Ganenthiran, an investor in quick commerce startup Zepto and former executive of American grocery delivery company Instacart, as the newest board member of its parent company Trustroot Internet.

Regulatory filings accessed by Inc42 showed that Ganenthiran was appointed a board director on August 17. Udaan also confirmed the development to Inc42 without giving any further details.

Sources told The Arc that Ganenthiran will be a representative of Lightspeed on the company’s board. Lightspeed India, the biggest shareholder in the B2B ecommerce platform, commands two seats on the board but so far had only one member on the board. Lightspeed India partner Bejul Somaia is the other nominee, who will continue to be on Udaan’s board.

“Ganenthiran will play an active role on the board,” a person familiar with the development was quoted as saying.

The appointment comes at a time when Udaan is reportedly in talks to raise a $200-250 Mn internal funding round that could see participation from Lightspeed and other existing investors. As per the reports, the B2B ecommerce giant could see a sharp drop in valuation as capital drought continues to weigh heavily on the entire ecosystem.

Just like a majority of Indian unicorns, Udaan continues to bleed heavily. The B2B ecommerce major posted a loss of INR 3,075 Cr in the financial year 2021-22 (FY22), up 1.2X from INR 2,503.30 Cr in the previous year. However, its revenue from operations soared 1.7X year-on-year (YoY) to INR 9,943.8 Cr in FY22.

As the funding drought continues, the unicorn has been cutting corners and streamlining costs. In a bid to ‘achieve efficiency’, it conducted two rounds of layoffs in the past one-and-a-half year, firing more than 500 employees. It also downsized operations and shelved expansion plans in its bid to cut costs.

Founded in 2016 by Sujeet Kumar, Vaibhav Gupta and Amod Malviya, Udaan sells products spanning 5 Lakh categories in more than 1,000 Indian cities. It also boasts of a network of 3 Mn retailers and 30K+ sellers across the country.

The startup last raised a debt round from Temasek-backed EvolutionX Debt Capital in November last year. It has reportedly raised $1.6 Bn in funding across multiple rounds till date.

The development was reported by The Arc.