India’s largest B2B e-commerce platform “Udaan” is gearing up for the big leagues—$114 million stronger
Bengaluru-based Udaan, the trailblazing B2B e-commerce unicorn, has raised a whopping $114 million in its Series G funding round, reaffirming investor confidence as the company readies itself for a public market debut in 2026.
The Powerhouse Investors Are Back
The round was led by existing investors, including M&G Investments and Lightspeed Venture Partners, maintaining Udaan’s valuation at a solid $1.8 billion. This capital injection not only underscores the platform’s resilience in a competitive e-commerce space but also signals that Udaan is doubling down on its aggressive growth and profitability targets.
Where the Money’s Going
Udaan plans to deploy the fresh capital in several high-impact areas:
Expanding operations in the FMCG and HoReCa (Hotel/Restaurant/Catering) sectors
Accelerating private-label initiatives—particularly in staples
Boosting contribution margins and improving unit economics
Scaling tech infrastructure to support the next phase of hyper-growth
This funding round is part of a strategic war chest aimed at strengthening its positioning before the IPO bell rings in 2026.
Leaner, Stronger, Smarter: Operational Efficiency on Point
Udaan isn’t just raising funds—it’s fixing the bottom line. Over the past three years, the company has:
Reduced EBITDA burn by 40% year-on-year
Cut fixed costs by 20% in 2024
Maintained a strong focus on sustainable growth and profitability
The goal? Achieving group-level EBITDA profitability within 18 months, a milestone that would place it among the most robust tech startups in India.
What Is Udaan, Anyway?
Founded in 2016, Udaan has reshaped India’s fragmented retail landscape by enabling manufacturers and wholesalers to connect directly with small retailers across the country. It currently operates across diverse verticals:
FMCG
Electronics
Pharmaceuticals
Lifestyle
Agricultural staples
Udaan also offers credit and financial services through its fintech arm udaanCapital, further fueling small businesses across India.
The Bigger Picture: IPO, Vision, and Market Disruption
Udaan’s Series G funding isn’t just another headline—it’s a critical move in its long-term roadmap. As India’s digital economy expands and small retailers embrace e-commerce, Udaan is uniquely positioned to:
Dominate India’s $1 trillion retail market
Create tech-enabled B2B ecosystems
Pioneer financial inclusion for millions of kirana stores and MSMEs
The upcoming IPO is expected to be one of the most closely watched tech listings from India, offering global investors a chance to tap into the country’s digital-first business commerce revolution.
Udaan is not just surviving; it’s thriving—leaner, smarter, and financially more stable. This $114 million boost puts the company on the fast track toward IPO-readiness and operational profitability, proving it’s more than just a startup—it’s a movement.
Sources & References:
Mint – Udaan Raises $114M, Financial Express – Series G Details, Indian Startup News – Full Story
Also read: Pepperfry Raises ₹43.3 Cr in Fresh Funding to Accelerate Growth & Expansion
