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E-Commerce Firm Udaan Raises $340 Million Ahead of Planned IPO

E-Commerce Firm Udaan Raises $340 Million Ahead of Planned IPO

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Udaan, the B2B trade platform, has set the stage for an aggressive leap forward in its growth trajectory with the announcement of a substantial $340 million Series E financing. This funding, led by M&G Plc and joined by stalwart investors like Lightspeed Venture Partners and DST Global, marks a pivotal moment in the company’s journey toward a planned IPO.

The infusion of capital not only fortifies udaan’s financial position but also symbolizes a robust endorsement of its vision to revolutionize the landscape for small businesses. This round of funding, a blend of fresh equity investment and the conversion of debt into equity, propels udaan closer to its profitability goal within the next 12-18 months. The strategic utilization of these funds aims to bolster customer experiences, reinforce market penetration, and cultivate robust vendor partnerships.

Empowering Bharat’s Small Businesses

Central to udaan’s mission is the empowerment of small businesses and kiranas across India. The infusion of funds is earmarked to enhance supply chain efficiency, fortify strategic alliances, and augment long-term capabilities, all underpinning a sustainable business model tailored to serve the diverse needs of local businesses.

E-Commerce Firm Udaan Raises $340 Million Ahead of Planned IPO

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Vaibhav Gupta, udaan’s Co-founder and CEO, emphasizes, “The regional-operated design will not only get us closer to our customers, but also make our operations more agile and efficient.” This underscores the company’s commitment to fostering localized engagement while ensuring operational agility—a key factor in udaan’s success story.

Since its inception in 2016, udaan has been on a relentless trajectory to transform the trade ecosystem by leveraging technology. Its operations span an extensive array of categories, including lifestyle, electronics, FMCG, and more. With a robust logistics network covering over 1200 cities and 12,500+ pin codes through udaanExpress, the platform has cemented its position as a critical enabler for B2B trade.

A Path to Empowerment

With its sights set on a burgeoning $100 billion eB2B market opportunity in India, udaan remains steadfast in its commitment to simplifying trade complexities. By empowering small businesses through technological prowess and inclusive financial practices, udaan paves the way for their success in an increasingly digital business landscape.

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As udaan continues its mission to democratize trade and empower Bharat’s small businesses, this latest funding round serves as a testament to the company’s unwavering dedication and the industry’s confidence in its transformative potential.

E-Commerce Startup Udaan to Trim Costs Ahead of 2025 IPO

E-Commerce Startup Udaan to Trim Costs Ahead of 2025 IPO

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Before its anticipated IPO in 2025, Indian e-commerce firm Udaan is concentrating on cutting expenses and establishing partnerships with consumer goods companies. Operating profitability is the business’s goal, according to the chief executive officer Vaibhav Gupta, and it should happen in 18 months. Lightspeed Venture Partners-backed Udaan is among a slew of Indian startups aiming to capitalise on the expanding economy of the nation while satisfying investor expectations for profitability. With its financial technology division, Udaan, which provides small merchants with an online marketplace and logistical network, is also branching out into lending.

The priority “is steady and predictable financial performance,” Gupta said. “Second, strategically we want to ensure that we are top of mind with shopkeepers, with big manufacturers, and we maintain our relative market share”, he added.

retail.economictimes.indiatimes.com

Udaan Aims to capitalize on India's customer base

funded by Lightspeed Venture Partners Amongst the businesses attempting to capitalise on India’s customer base and economy’s explosive expansion is Udaan, which is also aiming to satisfy investor requests for revenue generation.

At the height of its employment, Udaan brought in thousands of people. Last year, it, along with other Indian startups, reduced employment and tightened internal controls as well as compliance.

With around 1,800 employees as of right now, Gupta would not say if more layoffs are necessary.

E-Commerce Startup Udaan to Trim Costs Ahead of 2025 IPO

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Corporate governance errors at Byju’s, an Indian online teaching company that was once the country’s most valuable startup with a 22-billion-dollar value, exposed the particular difficulties encountered by South Asian entrepreneurs and encouraged other businesses to exercise greater caution.

“We continue to move towards more professionalized management, professionalized board and also institutionalized shareholders as we go towards public markets,” Gupta said.

retail.economictimes.indiatimes.com

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Udaan has not yet decided if it will be listed internationally or in India. According to a report by September Business Standard, it was in discussions to raise a total of 400 million dollars and was estimated at more than three billion dollars in a 2021 investment round. Tencent Holdings Ltd. owns 6 percent of Udaan, while Lightspeed owns approximately 35 percent.

In 2016, three developers who worked before at Flipkart launched the firm. Until Vaibhav Gupta, who was among the founders, took on the role of the chief executive officer in 2021, the three of them jointly managed Udaan. Amod Malviya and Sujeet Kumar, the other two founders, are members of the board.