The B2B ecommerce company’s structured financing includes fresh equity, debt funding and debt-to-equity conversion to strengthen its balance sheet and simplify its capital structure
B2B ecommerce platform Udaan has secured a structured financing package of approximately $160 million through a combination of fresh equity, new debt and debt-to-equity conversion, as the company moves closer to its long-term public market plans.
The Bengaluru-based company said the transaction will involve fresh equity infusion from existing shareholders and a new investor. Additionally, some existing convertible bondholders will convert a portion of their outstanding bonds into equity, while the remaining bonds will be extended under revised terms and conditions.
As part of the financing round, one of the world’s leading investment management firms has committed around $45 million through its private credit platform, providing fresh debt capital. Udaan has not disclosed the identity of the investor. The company said the transaction will strengthen its balance sheet, enhance financial flexibility and simplify its capital structure as it prepares for a potential public listing.
Operational Improvements
Udaan said its business has witnessed significant operational improvements over the past 10 quarters, from Q4 calendar year 2023 to Q1 calendar year 2026. During this period, the company’s revenue grew at a compound annual growth rate (CAGR) of around 25 per cent, while its contribution margin improved by nearly 500 basis points. The company added that its Ebitda burn declined by around 70 per cent during the period, with its largest operating cities and clusters achieving Ebitda profitability.
Udaan also highlighted the growth of its private label portfolio, which now contributes 15–25 per cent of staples sales across its operating cities, supporting margin expansion and improving operating leverage.
“This financing round marks another milestone in Udaan’s journey towards building a sustainable, profitable and institutionally resilient business,” said Vaibhav Gupta, Co-founder and Chief Executive Officer, Udaan.
Gupta added that the strengthened balance sheet and simplified capital structure will allow the company to continue investing in customer value while progressing towards its long-term public market ambitions.
IPO Preparation
The latest financing comes nearly a year after Udaan raised USD 114 million in its Series G funding round in June 2025. The round was led by M&G Investments and Lightspeed, with participation from existing and new investors. The company has since accelerated preparations for a potential public listing. In March 2026, Udaan reportedly initiated its reverse flip process to shift its corporate domicile from Singapore to India.
Earlier, in July 2025, Udaan acquired retail technology startup ShopKirana through an all-stock transaction. The deal marked one of the largest consolidation moves in India’s B2B ecommerce sector, expanding Udaan’s presence in the kirana retail segment and strengthening its footprint across key markets.
