Udaan in Talks to Raise $50-60 Million From Existing Backers Lightspeed, M&G: Sources

Why It Matters

The funding underscores Udaan’s push toward profitability and a public listing, signaling confidence in India’s B2B ecommerce sector despite recent revenue compression. Achieving profit could position the company as a benchmark for other high‑growth B2B startups seeking capital market exits.

Key Takeaways

• Udaan seeks $50‑60M top‑up at $1.8B valuation.
• EBITDA burn cut 40% in FY25, aiming profit within 18 months.
• Revenue fell to ~$550M in FY25, losses narrowed to $127M.
• Expansion plans include 25+ warehouses, 200k+ retailers, supply‑chain boost.
• IPO likely after profitability, following peers Zetwerk, Infra.Market.

Pulse Analysis

Udaan, founded in 2016 by former Flipkart executives, has become a cornerstone of India’s B2B ecommerce landscape, linking manufacturers with kirana stores across 16 cities. After a $114 million round last June, the Bengaluru‑based firm is now courting a $50‑60 million top‑up from Lightspeed and M&G, keeping its valuation steady at $1.8 billion. This move comes as a wave of newer B2B players, such as Zetwerk and Infra.Market, prepare for IPOs, highlighting a broader market shift from private funding to public capital as the sector matures.

Financially, Udaan has trimmed its cost base dramatically. EBITDA burn fell 40% in fiscal 2025 and has nearly halved again in early 2026, allowing the company to narrow its FY25 loss to about $127 million from a peak valuation of $3.2 billion in 2021. Revenue, however, contracted from a peak of roughly $1.2 billion in FY22 to about $550 million in FY25 after the firm exited non‑essential categories. The tighter focus on grocery and essential goods has improved margins and set the stage for the targeted profitability milestone within the next 15‑18 months.

Strategically, the fresh capital will be deployed to reinforce Udaan’s supply‑chain network, expand its warehouse footprint, and deepen go‑to‑market capabilities for over 200,000 retail outlets. By sharpening operational efficiency and achieving profitability, Udaan aims to launch an IPO that could validate the B2B ecommerce model for investors. The company’s shift back to an Indian domicile further aligns it with domestic regulatory frameworks, potentially smoothing the path to a successful public offering and reinforcing India’s position as a hub for high‑growth B2B platforms.