Bengaluru-based business-to-business ecommerce platform Udaan has announced a proposed financing transaction worth about $160 million (about Rs 1,530 crore) comprising equity, debt and debt-to-equity conversion, as the company looks to simplify its capital structure and strengthen its balance sheet ahead of a potential public listing.
The transaction includes fresh equity from existing shareholders and a new investor, while certain existing convertible bondholders will convert a portion of their debt holdings into equity, the company said in a statement on Tuesday. The remaining convertible bonds will be extended on revised terms.
In addition, a leading global investment management firm has committed about $45 million through its private credit platform, Udaan said.
It didn’t disclose the names of any of the investors who took part in the financing.
Media reports had earlier suggested that existing investors M&G Investments and Lightspeed Venture Partners were expected to participate in the equity infusion, while BlackRock was expected to provide the private credit financing.
Including the proposed financing, Udaan has secured about $2.2 billion in equity, debt and other financing since it was founded in 2016. The company counts M&G Investments, Lightspeed, DST Global, Tencent, GGV Capital, Altimeter Capital, Footpath Ventures and Microsoft among its investors.
Udaan operates a B2B ecommerce platform serving retailers across categories including fast-moving consumer goods, staples, fruits and vegetables, and pharmaceuticals. The company also provides working capital financing through its fintech arm, udaanCapital.
The proposed transaction is expected to provide the company with greater financial flexibility while advancing its long-term public market plans, it said.
“This financing round marks another milestone in udaan's journey towards building a sustainable, profitable and institutionally resilient business. The continued support from our existing investors, alongside the participation of new capital partners, reflects strong conviction in our business fundamentals and long-term opportunity,” said Vaibhav Gupta, co-founder and chief executive officer of the company.
The company said its revenue grew at a compound annual growth rate of about 25% between the fourth quarter of calendar year 2023 and the first quarter of calendar year 2026. During the same period, contribution margins improved by nearly 500 basis points while EBITDA burn declined by around 70%.
The company said several of its largest operating cities and clusters have achieved EBITDA profitability. Its private-label portfolio now contributes 15-25% of staples sales across operating cities, according to the company.