Udaan, one of India’s leading B2B e-commerce platforms, has wrapped up its Series G funding round, securing a total of $114 million. The round was led by M&G Investments and Lightspeed, with participation from both existing and new investors.
This fresh infusion follows a $75 million tranche raised earlier in February at a flat valuation. With this, Udaan not only strengthens its war chest but also signals a clear intent to double down on its core business ahead of its anticipated IPO.
In a statement, the company said the new capital will be channeled towards expanding its footprint in high-volume categories like FMCG and deepening its presence in the HoReCa (Hotel, Restaurant, and Catering) segment. Udaan is also looking to scale its private-label brands in the staples category—part of a larger strategy to improve margins and boost brand stickiness.
But more than just growth, Udaan’s leadership is keen to highlight efficiency. “Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage,” said Vaibhav Gupta, co-founder and CEO of Udaan. “We have reduced our EBITDA burn by 40% every year for the last 3 years and are on track to achieve full group EBITDA profitability in the next 18 months.”
Udaan’s operational tune-up seems to be bearing fruit. The company posted over 60% year-on-year growth in CY2024, alongside a 300+ basis point improvement in contribution margin. Fixed costs were trimmed by 20%, further slashing EBITDA burn by 40% in 2024, with another 20% reduction already achieved in 2025 so far.
While the company hasn’t revealed full-year FY25 financials yet, its FY24 numbers offer a mixed picture. Gross revenue (GMV) inched up 1.7% to ₹5,706.6 crore, from ₹5,609.3 crore in FY23—a modest climb, especially for a growth-stage startup. However, Udaan showed discipline on the bottom line, cutting losses by 19.4% to ₹1,674.1 crore.
As Udaan sharpens its focus on profitability and core growth verticals, the latest fundraise also serves to bolster its balance sheet—a crucial step as the company eyes the public markets. With steady margin improvements and leaner operations, the coming 18 months will be pivotal for Udaan’s IPO ambitions.
Whether the market will reward its disciplined growth remains to be seen, but for now, Udaan appears to be flying a more calibrated course.
