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Udaan raises $250 mn via convertible note and debt
Udaan founders Amod Malviya (left), Vaibhav Gupta and Sujeet Kumar

Bengaluru-based B2B marketplace Udaan has raised an additional round of $250 million (around Rs 1,875 crore) via convertible note and debt, regulatory filings show.

Out of the $250 million raised, $200 million will be convertible notes or short-term debt that can subsequently be converted to equity, and $50 million will be debt. Operated by Hiveloop Technology Pvt. Ltd, Udaan has raised a total of $1.4 billion including this convertible note and debt round.  

Existing investors, including those who made the secondary (ESOP) transaction in the first half of 2021, participated in this round, which was oversubscribed 2X. VBG Realty LLP participated in the round with a Rs 16 crore investment, while Blacksoil Asset Management and Blacksoil India Credit Fund invested Rs 10 crore. Corsa Ventures invested Rs 9 crore, and Walton Street India invested Rs 5 crore, according to filings.  

Udaan did not comment on the development. 

However, in an internal company note, Udaan CFO Aditya Pande, said, "We are excited and glad to share that we have 5 new marquee investors coming onboard the udaan juggernaut, as part of our recently concluded convertible note financing. This round was oversubscribed 2x and also saw participation from our existing investors, including those who bought into the company through the secondary (Esop) round in H1 2021." 

Pande added that the move "reflects our broadening the capitalization strategy as we architect our journey for public markets and thereafter".

In September, Udaan received shareholders' approval to raise up to Rs 2,000 crore (about $270 million) in debt financing through the issuance of non-convertible debentures in tranches over a year. 

Udaan raised $280 million in its latest financing round in January 2021 from Octahedron Capital and Moonstone Capital and existing investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital, and Tencent. It had entered the coveted unicorn club in 2018 when it raised $225 million in its Series C round from existing investors DST Global, owned by Russian billionaire Yuri Milner, and Lightspeed Venture Partners.  

Former Flipkart employees Amod Malviya, Sujeet Kumar, and Vaibhav Gupta co-founded Udaan in 2016. It connects traders, wholesalers, retailers, and manufacturers on a single platform, allowing them to find clients, suppliers, and products across categories and connect with one another directly for the cheapest price.

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