Udaan Acquires ShopKirana in All-Stock Deal

Mumbai, 18 July 2025: In a significant step toward consolidating its position in India’s eB2B commerce landscape, IPO-bound Udaan has acquired retail-tech startup ShopKirana in an all-stock deal. This strategic move is expected to bolster Udaan’s presence in key categories such as staples, FMCG, and HoReCa (hotel, restaurant, and catering), setting the stage for deeper market reach and enhanced operational scale.

Acquisition Enhances Udaan’s Expansion Across High-Growth Retail Markets

With a stronghold in tier-2 and tier-3 cities like Indore, Bhopal, Lucknow, Agra, Surat, and Meerut, ShopKirana has built a digital backbone for kirana stores through efficient procurement tools, competitive pricing, and agile last-mile delivery. This aligns with Udaan’s long-term strategy to expand its retail-tech footprint across India’s underserved markets.

By onboarding ShopKirana, Udaan gains access to a well-established retailer network and local expertise, which will help it serve more shopkeepers while deepening brand engagement in emerging regions.

Operational Integration Expected to Accelerate Profitability and Market Reach

Udaan noted that the integration will enable cost efficiency, improved logistics, and wider geographic access. ShopKirana’s domain strengths in FMCG and retail procurement will complement udaan’s national supply chain, credit infrastructure, and technology platform-resulting in improved service delivery and better margins across the value chain.

The combined entity aims to scale high-volume categories, increase operating leverage, and use analytics to optimise inventory, logistics, and financing-contributing significantly to udaan’s goal of reaching sustainable profitability.

Strategic Milestone on Udaan’s Path to Public Listing

Vaibhav Gupta, Co-Founder and CEO of Udaan, described the acquisition as a key milestone in the company’s IPO journey.

“ShopKirana has a quality team. Together, we share the belief in winning by becoming a preferred supplier to shopkeepers and a preferred partner to brands. We also share the core strategy of winning on costs,” Gupta said.

The deal also brings Info Edge, an influential investor in digital-first businesses, onto Udaan’s cap table, reinforcing investor confidence in the company’s long-term strategy to digitise India’s retail sector.

Backed by Fresh Funding to Power Growth and Efficiency

This acquisition follows Udaan’s recent USD 114-million Series G funding round led by M&G Investments and Lightspeed. The capital will support category growth, especially in FMCG and HoReCa, and enable further expansion into new markets. It will also be used to optimise sourcing, enhance supply chain resilience, and unlock efficiencies across core business functions.

Sumit Ghorawat, Co-Founder of ShopKirana, welcomed the partnership.

“This partnership brings together our expertise in the FMCG space with Udaan’s scale and infrastructure, enabling us to take more brands to more retailers, more efficiently,” he said.

The transaction is subject to regulatory approvals.

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