Udaan Seeks Fresh Funding Of Up To $100 Mn

B2B ecommerce unicorn Udaan is in discussions with M&G Prudential to raise $80-100 Mn in a fresh funding round.

This new round will also raise M&G’s stake in Udaan from around 15% now, once the round is closed, ET reported citing sources.

Inc42 has reached out to Udaan for comments on the development. The story will be updated based on the response.

The report further said that Lightspeed Venture Partners holds the highest stake in the company, while M&G Prudential joins second in the fray for highest ownership.

Sources confirmed that the term sheet is signed and the deal contours are being finalised, adding that the funding will be at a flat valuation of $1.8 Bn.

It is pertinent to note that the company’s valuation dropped by nearly half to around $1.8 Bn in a down round, which was last marked at $3.2 Bn following a funding round in 2021.

Udaan, founded in 2016 by Vaibhav Gupta, Sujeet Kumar and Amod Malviya, previously raised $340 Mn in its Series E funding round led by M&G Prudential, with participation from existing investors Lightspeed Venture Partners and DST Global, in December 2023.

The Bengaluru-based startup enables supply chain and logistics operations focused on B2B trade. Udaan claims to enable daily delivery across over 1,000 cities and 12,500 pin codes through udaanExpress.

This development comes at a time when industry peer Infra.Market is also in plans to scoop up a fresh funding of $150-200 Mn (about INR 1,250-1,680 Cr), from its existing investors, including Tiger Global, Foundamental and Evolvence would inject majority capital for the new round and also believed to raise their stake in the company.

It is to note that India’s e-commerce market, which is projected to hit $400 Bn by 2030, and according to Inc42’s ‘The State Of Indian Ecommerce H1 2024’ report, Indian ecommerce startups cumulatively raised over $34 Bn via 1,833 deals between 2014 and H1 2024.