Bengaluru-based B2B e-commerce platform Udaan has successfully closed its Series G funding round, raising $114 million, as it gears up for profitability and a public listing by 2026.
Funding Led by M&G Investments and Lightspeed
Udaan confirmed the closure of its Series G equity round at $114 million, led by M&G Investments and Lightspeed Venture Partners. The round also saw participation from both new and existing investors. This latest infusion comes after a $75 million tranche raised earlier in February 2025 at a flat valuation.
The company’s valuation remains steady at approximately $1.8 billion, consistent with its prior round in 2023, when it raised $340 million under similar leadership.
Capital Allocation: Focus on FMCG and HoReCa
According to Udaan, the funds will be strategically deployed to enhance its footprint in the fast-moving consumer goods (FMCG) category, as well as the hotel, restaurant, and catering (HoReCa) segment, two verticals with significant growth potential in India’s B2B commerce landscape.
The company also plans to grow its private label initiatives, especially in staples because of the high margins and consistent demand. For the company, this is part of their strategy to continue to deepen market penetration while improving profitability as they prepare for an eventual IPO.
Profitability Within Sight
Udaan has aggressively worked toward operational efficiency over the past three years. CEO and co-founder Vaibhav Gupta stated that the company has reduced its EBITDA burn by 40% annually and is now on track to achieve full group EBITDA profitability within the next 18 months.
“We have transformed the business by building cost as a capability and a competitive advantage,” Gupta noted in a statement.
Financial Performance in FY24 and CY2024
While Udaan’s gross merchandise value (GMV) saw modest growth of 1.7% in FY24, reaching ₹5,706.6 crore from ₹5,609.3 crore in FY23, the company achieved notable success in cost reduction and margin improvements. Udaan cut its net losses by 19.4% in FY24, reducing them from ₹2,075.9 crore in FY23 to ₹1,674.1 crore.
The company also reduced its fixed costs by 20%, leading to a significant improvement in its contribution margin by 300 basis points in CY 2024, followed by an additional 100 bps improvement in the first half of CY 2025.
Total expenses were brought down by 4.4%, thanks to a combination of lower employee costs (down 35.4%), logistics and packaging cuts (down 16.8%), and reduced outsourced manpower and professional expenses. However, the cost of materials still made up over 75% of total expenses, growing by 4.2%.
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IPO Preparations Underway
As part of its long-term vision, Udaan is planning to go public by 2026. In January 2025, the company received approval from the National Company Law Tribunal (NCLT) to consolidate its business entities under a single arm, Hiveloop E-Commerce, in a move to simplify its corporate structure for the anticipated IPO.
Market Leadership and Future Outlook
Founded in 2016 by former Flipkart executives, Udaan has grown into a dominant player in India’s B2B e-commerce ecosystem, reportedly controlling around 70% of the digital wholesale market. The platform connects over 3 million retailers and 25,000 sellers across categories like FMCG, pharmaceuticals, electronics, and fresh produce.
With the latest funding round, Udaan aims to continue building its logistics infrastructure, expand product lines, and solidify its path toward sustainable profitability and a successful stock market debut.
What Lies Ahead for Udaan
Udaan’s $114 million Series G raise represents a key milestone toward profitability and an IPO. With strong investor support, disciplined cost control, and a focused, vertical emphasis, Udaan looks quite strong for future growth as B2B commerce transforms in India in the coming years.
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