Udaan Closes Series G Round At $114 Mn

B2B ecommerce major Udaan today said it has marked the final close of its Series G funding round at $114 Mn (around INR 974 Cr).

The round was raised in two tranches. While in the first tranche the startup secured $75 Mn from existing investors M&G Prudential and Lightspeed Venture Partners, in the second round it bagged $39 Mn from existing and new investors.

With the freshly raised capital, Udaan plans to bolster its category and customer footprint, focused on the fast-moving consumer goods (FMCG) and hotel, restaurant, and catering (HoReCa) customer segments. 

Additionally, the funds will be deployed in scaling up the startup’s private label brands initiatives in the staples category. Apart from this, the proceeds will help in fuelling its initial public offering (IPO) plans.

Founded in 2016 by Vaibhav Gupta, Sujeet Kumar and Amod Malviya, Udaan enables supply chain and logistics operations focused on B2B trade. It claims to enable daily delivery across over 1,000 cities and 12,500 pin codes through Udaan Express.

It also has a fintech platform udaanCapital that offers financial services to small businesses and manufacturers and helps them with their working capital requirements. 

In its February town hall meeting, Gupta said that the startup raised the first tranche of its Series G funding round at a flat valuation of $1.8 Bn.

The funding announcement comes after the startup received an NCLT nod for consolidation of its various business entities into a unified entity – Hiveloop Ecommerce Pvt Ltd. – from the National Company Law Tribunal (NCLT). This is a major step with respect to the startup’s plan for public listing. 

Last year, it closed a debt funding of INR 300 Cr from Lighthouse Canton, Stride Ventures, InnoVen Capital and Trifecta Capital.

Till date, the startup has raised over $2.06 Bn in total funding and counts Microsoft, Tencent and Lightspeed among its investors.

On the financial front, Udaan’s FY24 revenue stayed flat at INR 5,707 Cr in FY24, while its net loss shrank more than 50% to INR 1,674 Cr. 

“We have reduced our EBITDA burn by 40% every year for the last three years and are on track to achieve full group EBITDA profitability in the next 18 months,” Gupta had said. 

India’s B2B Ecommerce Space Shape Shifts

Major B2B ecommerce players like Udaan, Jumbotail and ElasticRun are going through business reset amid slowed investments, blitzscaling and deployment of asset-heavy models.

Earlier this year, Udaan’s industry peer Jumbotail announced that it is acquiring rival marketplace Solv India for an undisclosed amount. As per sources, SC Ventures which primarily owns 90% of the stake in Solv India will be selling its entire stake to Jumbotail for around $40 Mn – $50 Mn in a mix of cash and equity deal. 

In the most recent development, Competition Commission of India (CCI) has cleared the multi-layered deal involving Jumbotail Technologies’ proposed acquisition of Solv India.

As per Inc42’s ‘The State Of Indian Ecommerce Report, H1 2025’, the market is expected to hit a staggering $400 Bn mark by 2030, growing from $138 Bn in 2024 at a steady 19% CAGR.

Notably, Indian ecommerce startups cumulatively raised over $35 Bn via 1,833 deals since 2014. In 2024 alone the sector secured over $1.5 Bn in funding as per the report.