Udaan Secures $114 Million Funding, Eyes Full EBITDA Profitability in 18 Months

Image Source: CNBC TV18

India’s B2B e-commerce giant Udaan has closed a $114 million funding round, led by UK-based M&G Prudential and Lightspeed Venture Partners, with participation from existing investors. The company is now on track to achieve full group EBITDA profitability within the next 18 months, marking a significant milestone in its financial turnaround.

Funding Details:

The $114 million round includes a $75 million infusion from M&G and Lightspeed.
The funding was raised at a flat valuation of $1.8 billion, reflecting investor confidence in Udaan’s growth strategy.

Profitability Target:

Udaan has reduced its EBITDA burn by 40% annually over the last three years.
The company aims to achieve full EBITDA profitability by late 2026.

Strategic Focus Areas:

The fresh capital will be deployed to strengthen Udaan’s footprint in FMCG, hotel, restaurant, and café (HoReCa) segments.
Udaan will also expand its private-label brands in the staples category.

Operational Restructuring:

The company underwent significant restructuring in FY24, leading to flat revenue growth at ₹5,707 crore.
Despite restructuring, Udaan still holds $100 million in debt, though payment timelines have been extended.

Public Market Aspirations:

The funding will fortify Udaan’s balance sheet, providing financial flexibility as it prepares for a potential IPO.
Udaan’s latest funding round and profitability roadmap signal strong investor backing, reinforcing its position as a leading B2B e-commerce player in India.

Source: Economic Times, MSN, and Indian Startup News.