Udaan, a Bengaluru-based unicorn in B2B e-commerce, has raised $114 million in its Series G investment round as it ramps up its attempts to become profitable and gets ready for a 2026 public debut. The most recent fundraising effort demonstrates the rising trust that investors have in Udaan’s redesigned, methodical business plan and strategic vision. In this article, we will delve into the developments surrounding the latest fundraise in a Series G round by Udaan and its potential implications for the firm.
Credits: Business Standard
Big Names Lead the Charge
Both new and existing investors participated in the Series G round, which was led by M&G Investments and Lightspeed Venture Partners. This most recent financing complements the $75 million Udaan raised earlier in February 2025, maintaining its valuation at $1.8 billion, which has remained constant since its $340 million round in 2023.
The company’s current emphasis on operational maturity, stability, and unit economics over aggressive top-line increase is reflected in the flat valuation.
Strategic Bet on FMCG and HoReCa
Udaan is directing this fresh capital toward scaling its presence in the fast-moving consumer goods (FMCG) sector and the hotel, restaurant, and catering (HoReCa) segment—two high-potential verticals in India’s B2B commerce space. These segments are seen as lucrative, both in terms of volume and recurring demand.
The company also plans to double down on its private label offerings, especially in staples. High margins and predictable demand in categories like grains, pulses, and packaged goods make private labels a strategic fit for Udaan’s profitability goals.
Profitability on the Horizon
CEO and co-founder Vaibhav Gupta emphasized that the company has made major strides in financial discipline, stating:
“We have transformed the business by building cost as a capability and a competitive advantage.”
Over the past three years, Udaan has worked aggressively to reduce its EBITDA burn by 40% annually, and is now aiming to achieve full group EBITDA profitability within the next 18 months.
Solid Financial Performance in FY24
While Udaan’s gross merchandise value (GMV) saw a modest 1.7% growth in FY24—reaching ₹5,706.6 crore from ₹5,609.3 crore in FY23—the company’s real wins were in cost control and margin improvement:
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Net losses dropped by 19.4%, from ₹2,075.9 crore in FY23 to ₹1,674.1 crore in FY24.
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Fixed costs reduced by 20%, while employee expenses dropped by 35.4%.
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Logistics and packaging costs fell by 16.8%, and outsourced professional costs also dipped.
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Contribution margins improved by 400 basis points between CY2024 and H1 CY2025.
Though the cost of materials still comprises over 75% of total expenses and rose by 4.2%, the company’s leaner cost structure suggests a tighter, more focused operating model.
IPO Preparations in Motion
In January 2025, Udaan received approval from the National Company Law Tribunal (NCLT) to consolidate its multiple business units under a single entity—Hiveloop E-Commerce. This corporate streamlining is a crucial step toward IPO-readiness, enhancing transparency and investor appeal.
With a public listing targeted for 2026, the next 18 months will be critical as Udaan pushes to hit profitability benchmarks and refine its corporate governance structure.
Market Leadership and the Road Ahead
Founded in 2016 by former Flipkart executives, Udaan has rapidly grown to become a dominant player in India’s B2B e-commerce landscape, connecting over 3 million retailers and 25,000 sellers. The company is estimated to control around 70% of the digital wholesale market in the country.
Armed with fresh capital, Udaan plans to:
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Expand its logistics and warehousing infrastructure
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Deepen its product lines across verticals
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Continue margin-focused growth in Tier 2 and Tier 3 markets
Credits: Medial
Conclusion: Strong Momentum into the Future
A significant turning point in Udaan’s development from a high-burn growing startup to a focused, profitable market leader was marked by the company’s $114 million Series G fundraising. Udaan is in a strong position to benefit from India’s quickly changing B2B commerce market because to its better financials, investor support, and clear IPO strategy.
