Udaan Raises $114 Million In Equity From M&G Investments And Lightspeed
By Ankur Chandra | Published at: Jun 2, 2025 02:42 PM IST
New Delhi | June 2 – Business-to-business (B2B) e-commerce platform udaan has raised USD 114 million (approximately Rs 974 crore) in a fresh equity funding round, led by M&G Investments and Lightspeed.
According to the company, the new capital will be strategically deployed to deepen its presence across customer segments and product categories, with a sharp focus on the Fast-Moving Consumer Goods (FMCG) sector and the Hotel, Restaurant, and Catering (HoReCa) industry.
Focus Areas for Growth
The funding will be used to:
- Expand udaan’s footprint in the FMCG and HoReCa verticals
- Accelerate private label brand initiatives, especially in staples
- Strengthen the company’s balance sheet in preparation for a public market debut
The company said this round further supports its long-term strategy of delivering “consistent growth with profitability at scale”, driven by a regional cluster-led operating model that focuses on building a sustainable and scalable business.
Strong Progress on Profitability
udaan also reported significant operational improvements:
| Metric | Achievement |
|---|---|
| Fixed Cost Reduction | 20% cut |
| 2024 EBITDA Burn Reduction | 40% decline |
| 2025 YTD EBITDA Burn | Additional 20% reduction |
Co-founder and CEO Vaibhav Gupta highlighted the company’s disciplined cost transformation:
“Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage. We have reduced our EBITDA burn by 40 per cent every year for the last 3 years and are on track to achieve full group EBITDA profitability in the next 18 months.”
Platform Backbone
With a vast network connecting retailers, suppliers, and brands across the country, udaan’s tech-driven supply chain and logistics operations continue to serve as the foundation of its B2B commerce platform.
As the company progresses toward its IPO, this latest infusion of capital marks a critical step in reinforcing its market positioning and financial strength.
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