The report notes that the holding company defaulted on USD 170 million worth of compulsorily convertible notes or bonds due on 30 June
Initial public offering (IPO)-bound business-to-business (B2B) ecommerce firm Udaan is facing trouble as global creditors have initiated insolvency proceedings against its Singapore-based holding entity, Trustroot Internet, as per a media report.
The report added that the holding company defaulted on USD 170 million worth of compulsorily convertible notes or bonds that matured on 30 June. The company has appointed Alvarez and Marshal as the official liquidator.
The report quoted an Udaan spokesperson as saying that the matter is related to ongoing restructuring negotiations and offshore proceedings among offshore stakeholders at the offshore holding company level and has no bearing on its operating entities in the Indian market. Earlier, many other lenders such as JP Morgan, HSBC, DBS and Axis Bank withdrew working capital lines to the company, the report mentioned.
Originally, the holdco issuer was required to pay USD 170 to USD 200 million to bondholders by June. However, the firm and its advisers were negotiating a debt-restructuring plan, seeking an extension of the repayment schedule. However, the creditors refused to accept the terms, as per the report.
The report further added that while the maturity had no cure period but the bondholders were okay with extending the repayment timeline if the firm closed a new fundraising. The company has been grappling with mounting losses and a drop in its equity valuation, the report highlighted.
In May 2026, a separate report noted that Udaan was in talks to raise USD 50 to 60 million in top-up funding from its existing backers M&G Prudential and Lightspeed Venture Partners. The report noted that the company was negotiating the new round at a valuation of USD 1.8 billion. This funding round could be the last private capital raise for the company before it goes for an initial public offering (IPO).
Earlier, the company reduced its Ebitda burn by around 40 per cent in FY25 and is targeting net profitability in next 15 to 18 months. The company is planning to use the fresh capital to strengthen its supply chain network and expand its go-to-market capabilities, as per the report.
