Udaan closes latest funding round at $114 million led by UK’s M&G, Lightspeed

Enterprise-to-business ecommerce platform Udaan has closed a $114 million funding spherical led by current traders M&G Prudential (UK) and Lightspeed Enterprise Companions, the corporate mentioned in a press assertion on Monday.

The spherical, executed at a flat valuation of $1.8 billion, contains the beforehand disclosed $75 million infusion from the 2 traders, which founder and CEO Vaibhav Gupta had introduced throughout a townhall earlier this yr, as first reported by ET in February.

Udaan’s valuation had dropped by 44% in 2023 to round $1.8 billion, down from its peak of $3.2 billion following a funding spherical in January 2021 .

The corporate has not formally commented on its valuation.

The Bengaluru-based agency mentioned the recent capital might be used to deepen its presence throughout key classes together with fast-moving shopper items (FMCG) and lodge, restaurant, and café (HoReCa) segments. Udaan additionally plans to increase its personal label manufacturers, particularly within the staples class.

“This capital increase may even fortify Udaan’s stability sheet, offering enhanced monetary flexibility as the corporate advances towards its public market debut,” the corporate mentioned within the assertion.

Gupta added that Udaan has been slicing prices aggressively.“We have now lowered our Ebitda burn by 40% yearly for the final three years and are on observe to realize full group Ebitda profitability within the subsequent 18 months,” he mentioned.

In FY24, Udaan reported working income of Rs 5,707 crore, exhibiting flat progress amid main operational restructuring aimed toward decreasing losses.

As ET reported earlier, the corporate restructured its debt late final yr however nonetheless carries round $100 million in debt, with reimbursement timelines having been pushed out.